Which of the Following Statements Is Incorrect

question 31

Multiple Choice

Which of the following statements is incorrect?

• A) Working papers are useful aids in the accounting process.
• B) On the work sheet, the effects of the accounting adjustments are shown on the account balances.
• C) After the work sheet is completed, it can be used to help prepare the financial statements.
• D) On the work sheet, the adjusted amounts are sorted into columns according to whether the accounts are used in preparing the unadjusted trial balance or the adjusted trial balance.
• E) A worksheet is not a substitute for financial statements.

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Definitions:

Breach of Contract

The inability to fulfill any condition of an agreement, whether documented or verbal, without a valid legal reason.

Mitigate Damages

A legal principle requiring a party suffering loss to take reasonable action to minimize the extent of the damage or loss.

Nonbreaching Party

The party in a contract who has not violated the agreement and is often entitled to legal remedies.

Reliance Damages

Compensation granted for loss suffered as a result of relying on a promise or agreement that was later breached.