Which of the Following Statements About the Trail Balance Is

question 16

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.

---

Definitions:

Trade Receivables

The amounts owed to the business by customers for products or services that have been delivered or used but not yet paid for.

Sales Discount

A reduction in the price of goods or services offered to customers, typically to prompt early payment or bulk purchases.

Aging of Accounts

A method used to estimate uncollectable debts by categorizing accounts receivables based on how long they have been outstanding.

Uncollectible Percentage

Estimate of the portion of accounts receivable that will not be collected, used in calculating bad debt expense.