A Trial Balance Is Prepared to

question 155

Multiple Choice

A trial balance is prepared to

• A) prove that there were no errors made in recording transactions into the journal
• B) prove that no errors were made in posting to the ledger
• C) prove that each account balance is correct
• D) discover errors that affect the equality of debits and credits

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Definitions:

Cost

The amount of money or resources expended to acquire an asset, achieve a goal, or maintain an operation.

Profitability

A measure of the efficiency of a company in generating profits from its operations, typically expressed as net income divided by revenue.

Management Accountants

Professionals who focus on financial reporting and analysis for internal use by business managers to make informed decisions.

Monetary Terms

Describing or measuring something in terms of money or currency.