The Trial Balance

question 82

Multiple Choice

The trial balance:

• A) includes all accounts with a ledger balance.
• B) includes assets, liabilities, capital, withdrawals, revenues and expenses.
• C) ensures that debits equal credits.
• D) All of the above are correct.

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Definitions:

Payroll Tax Expense

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Inventory

The goods and materials a business holds for the purpose of resale or production.

Freight-in

The cost of transporting goods into a firm, usually considered part of the inventory cost.

Cost of Selling Goods

The total expense directly incurred from the production or purchase of items sold by a business.