Which Statement Relating to a Trial Balance Is Incorrect

question 18

Multiple Choice

Which statement relating to a trial balance is incorrect?

• A) A trial balance may be prepared at any time to test the equality of debits and credits in the ledger.
• B) A trial balance reports the financial position of a business.
• C) The fact that the sum of the debit column equals the sum of the credit column does not guarantee that no errors have been made in the ledger.
• D) A trial balance is a list of all the accounts in the ledger with their current balances.

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Definitions:

Kilograms

A metric unit of mass equal to 1000 grams.

Ounces

A unit of weight in the avoirdupois system, equal to 1/16 of a pound or approximately 28.35 grams.

Liters

A metric unit of volume equal to 1,000 cubic centimeters or about 0.26 gallons.

Milligrams

A reiterated definition: A metric unit of weight that equals to 0.001 grams, frequently used in pharmaceutical measurements.