Which of the Following Correctly Identifies an Advantage of Entering

question 12

Multiple Choice

Which of the following correctly identifies an advantage of entering data in a spreadsheet rather than a text file?

• A)Data in various websites is more often available as spreadsheets than as text files.
• B)Different observations are more likely to be run together in spreadsheets than in text files.
• C)Spreadsheets are readable on most computers, whereas text files are not.
• D)Spreadsheets allow manipulation of data, whereas text files do not.

---

Definitions:

Interest Tax Benefit

The financial advantage gained through deducting interest payments on debt from taxable income.

MM Model

Modigliani-Miller Model; a theory on capital structure that suggests the market value of a firm is determined by its earning power and the risk of its underlying assets.

Tax-Deductibility

Pertains to expenses that can be subtracted from gross income to reduce the total taxable income, thereby lowering the amount of tax owed.

Financial Leverage

Engaging borrowed assets to increase the anticipated yield from an investment.