A Spreadsheet Modeler Is Creating a Spreadsheet to Calculate Each

question 52

Multiple Choice

A spreadsheet modeler is creating a spreadsheet to calculate each employee's total wages for a time period. After completing the model, the analyst feels there is an error. Interpret the auditing information shown below to determine which of the following statements is TRUE.

• A) There is no error in the model.
• B) The model is incorrect because it is using the wrong information for the employee hours.
• C) The model is incorrect because it is using the wrong wage information.
• D) The model is incorrect, but it is impossible to determine why.
• E) The model is incorrect because it is using the wrong information for the employee hours and the model is incorrect because it is using the wrong wage information are both true.

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Definitions:

Noncontrolling Interest Valuation

The process of determining the value of minority shareholders' equity in a subsidiary that is not wholly owned by the parent company.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, held in the company's treasury, and are not considered when calculating earnings per share or dividends.

Bonds Payable

A form of long-term debt issued by corporations or governments that promises to pay the bondholder a specified sum of money at future dates.

Consolidated Income Statement

A financial statement that aggregates the income and expenses of a parent company and its subsidiaries, presenting a unified financial performance.