Which of the Following Statements Is TRUE About a Good

question 30

Multiple Choice

Which of the following statements is TRUE about a good spreadsheet model?

• A) A good model is easy to understand.
• B) A good model is easy to debug.
• C) A good model is difficult for users to modify.
• D) A good model doesn't use borders and shading.
• E) A good model is easy to understand and a good model is easy to debug.

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Definitions:

Net Working Capital

Represents the difference between a company's current assets and current liabilities, indicating the liquidity of the business.

Pro Forma Statements

Financial statements that project the future financial performance of a company, based on certain assumptions.

Long-Term Debt

Debt with a maturity of more than one year, used to finance or capitalize lasting investments.

Recoveries of Net Working Capital

The process of reclaiming cash invested in net working capital components, such as accounts receivable, and reducing accounts payable.