A Trial Balance May Prove That Debits and Credits Are

question 50

Multiple Choice

A trial balance may prove that debits and credits are equal, but

• A) an amount could be entered in the wrong account.
• B) a transaction could have been entered twice.
• C) a transaction could have been omitted.
• D) All of these answer choices are correct.

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Definitions:

Valid Acceptance

An expression of agreement to the terms of an offer in contract law that results in a binding contract between the parties.

Valid Offer

A proposal made by one party to another with specific terms, intending to form a legally binding agreement if accepted.

Lucy V. Zehmer

A landmark legal case focusing on the binding nature of a contract, stemming from the sale of a farm over a drunken conversation.

Assent

Assent is the agreement or approval by a party to the terms of a contract or an arrangement, often indicated through a signature or explicit agreement.