A Spreadsheet Modeler Is Creating a Spreadsheet to Calculate Each

question 61

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:

Written Agreement

A formal document that outlines the terms and conditions of a contract or agreement between two or more parties.

Revenue Recognition

The accounting principle that dictates how and when revenue is acknowledged in the financial statements, typically when it is earned and realizable.

Goods Or Services

Products or activities offered by a business to meet the needs or wants of customers, often classified as tangible or intangible respectively.

Customers

Individuals or entities that purchase goods or services from a business.