Which of the Following Statements About the Trail Balance Is

question 53

Multiple Choice

Which of the following statements about the trail balance is not true?

• A)Debit balances must equal credit balances.
• B)It includes only assets,liability and equity accounts.
• C)It is useful for detecting errors.
• D)It is an important step in the accounting cycle.

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Definitions:

Finishing Department

A section within a manufacturing operation where products undergo final processing, treatments, or coatings before being ready for sale.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, based on a selected activity base, before the actual costs are known.

Machine-Hours

A measure of the amount of time a machine is operated, often used in costing and budgeting processes.

Forming Department

A production department specialized in shaping and assembling parts or materials into finished goods.