Informative Headings and Subheadings

question 83

Multiple Choice

Informative headings and subheadings

• A) simply identify topics covered in the document.
• B) guide readers to think a certain way about the topics covered.
• C) are easier to write than descriptive headings.
• D) are less helpful to readers than descriptive headings.
• E) are unnecessary in business documents; descriptive headings are sufficient.

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Definitions:

Transactions

The exchange of goods, services, or funds between two or more parties in accounting, each recorded as an entry.

Inventory

The goods and materials that a business holds for the ultimate goal of resale or use in production.

Stockholders' Equity

The ownership share of shareholders in a corporation, calculated as the value of assets minus liabilities.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is retained by the company for reinvestment.