Identify the Statement Below That Is True

question 101

Multiple Choice

Identify the statement below that is true.

• A)If the trial balance is in balance,it proves that no errors have been made in recording and posting transactions.
• B)The trial balance is a book of original entry.
• C)Another name for the trial balance is the chart of accounts.
• D)The trial balance is a list of all accounts from the ledger with their balances at a point in time.
• E)The trial balance is another name for the balance sheet as long as debits balance with credits.

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Definitions:

Share of Stock

A unit of ownership in a corporation that entitles the shareholder to a portion of the corporation's earnings and assets.

Share Value

The financial worth of a single share of a company's stock.

Dividend Policy

Dividend Policy is a company's strategy or guidelines used to decide how much of its earnings will be paid out to shareholders in the form of dividends.

Common Stock

This is a type of security that signifies ownership in a corporation and represents a claim on part of the company's profits.