If a Worksheet Is Prepared at the End of the Accounting

question 25

Multiple Choice

If a worksheet is prepared at the end of the accounting year,

• A)the financial statements are prepared using the worksheet data.
• B)preparation of the financial statements is not required.
• C)the adjusting entries do not need to be journalized.
• D)only a balance sheet is required.

---

Definitions:

Market Price

The actual selling price of a good or service in the marketplace, determined by the forces of supply and demand.

Surplus

A situation in which the quantity of a good or service exceeds the quantity demanded at the current price.

Shortage

A situation in which the demand for a product or service exceeds the available supply.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market balance.