Which of the Following Statements Is Not Correct

question 37

Multiple Choice

Which of the following statements is not correct?

• A) If the post-closing trial balance does not balance,there are errors in the accounting records.
• B) The audit trial should be used to trace data through the accounting records to find and correct errors.
• C) The balance of the owner's capital account,as reflected on the post-closing trial balance,will match the amount reported on the income statement.
• D) The balance of the owner's capital account on the adjusted trial balance will usually be different than that reported on the post-closing trial balance.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the cost per unit of output.

Profit

The financial gain made in a transaction or the operation of a business after subtracting all expenses.

Harvest

The process of gathering mature crops from the fields.

Revenue

The total amount of money received by a company or government from its activities, such as sales of goods and services, before any expenses are subtracted.