When a Worksheet Is Used

question 33

Multiple Choice

When a worksheet is used:

• A) Adjusting entries are not prepared, since adjustments are shown on the worksheet.
• B) Revenue and expense accounts do not have to be closed to the Income Summary account, because the income statement is prepared from the worksheet and profit is already computed.
• C) Financial statements may be prepared before recording adjusting and closing entries in the accounting records.
• D) The Income Statement column and Balance Sheet column of the worksheet eliminate the need to prepare formal financial statements for a business.

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Definitions:

Logical Incrementalism

A strategic management process of making decisions step-by-step based on logical analysis and practical considerations.

Vague Feeling

An indistinct or unclear emotional state that is difficult to define or express precisely.

Threat

A potential source of harm or adverse effect on someone or something, which may be real or perceived.

Opportunity

A set of circumstances that makes it possible to do something or for something to happen; often seen as a chance for progress or advancement.