When a Worksheet Is Used

question 72

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 net income 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:

Federal Government

The national government of the United States, composed of three branches: legislative, executive, and judicial, responsible for governing the country according to its Constitution.

State and Local Governments

Regional governmental bodies within a country that are responsible for the governance of their specific areas, handling regional laws and regulations.

Surplus

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

Federal Personal Income Tax

A tax levied by the federal government on individuals' income, with rates varying based on income levels and filing status.