When Preparing the Financial Statements Using a Manual Accounting System

question 29

Multiple Choice

When preparing the financial statements using a manual accounting system, the worksheet will show profit:

• A) in the DR column of the income statement and in the CR column of the balance sheet.
• B) as zero.
• C) as a CR to the capital account and a DR to the bank account.
• D) in the DR column of the adjustments and in the CR column of the balance sheet.

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Definitions:

Adult Smokers

Individuals over the legal adult age who consume tobacco products through the act of smoking.

Elastic

A term used in economics to describe a situation where the demand for a good or service greatly changes in response to a change in price.

Excise Tax

A tax directly levied on certain goods, services, or activities, often with the aim of reducing their consumption or raising revenue.

Supply Curve

A graph that shows the relationship between the price of a good and the quantity supplied.