A College Student Is Developing a Spreadsheet Model of a Budget

question 10

Multiple Choice

A college student is developing a spreadsheet model of a budget. To calculate the monthly surplus (or deficit) , the student subtracts living expenses, entertainment costs, and savings from income. Entering which of the following formulas into cell B5 will perform the proper calculation?

• A) =Monthly Income − Expenses
• B) =B1 − B2 − B3 − B4
• C) =B2 + B3 + B4 − B1
• D) =B1 + (B2 − B3 − B4)
• E) =B1 − (B2 − B3 − B4)

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Definitions:

Economics

The social science that studies the production, distribution, and consumption of goods and services.

Investment

The allocation of resources, usually financial, into projects, assets, or enterprises, aiming to earn a return over time.

Inventory

The total amount of goods and materials held in stock by a business, industry, or other entity, used in production or sales.

Sole Proprietorship

An unincorporated business firm owned by one person.