A Writer for a Company Headquartered in Texas Is Designing

question 1

Multiple Choice

A writer for a company headquartered in Texas is designing a 100-page report, the text of which will be single-spaced to reduce printing costs. If she wants the report to be as easy to read as possible, which of the following should the writer NOT do?

• A) Place the top-level headings along the left margin and indent each subsequent level by several spaces.
• B) Use full justification.
• C) Use a heading at each significant change of topic.
• D) Use chunking to separate paragraphs.

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Definitions:

Gross Price Method

Gross Price Method involves recording inventory at its gross price, before deducting any trade discounts or rebates.

Allowance for Doubtful Accounts

An accounting concept referring to an estimate of the amount of receivables that may not be collected, which is used to reduce the total accounts receivable reported on the balance sheet.

Prior-Period Adjustments

Adjustments made to the financial statements to correct errors or omissions in previously issued financial statements from prior periods.

Trade Receivables

The amounts owed to the business by customers for products or services that have been delivered or used but not yet paid for.