Which of the Following Is Not True About the Unadjusted

question 52

Multiple Choice

Which of the following is not true about the unadjusted trial balance?

• A)An unadjusted trial balance may only include a preliminary amount for income tax expense.
• B)An unadjusted trial balance might balance even if there is a mistake.
• C)An unadjusted trial balance does not yet include end-of-the-accounting period adjustments.
• D)An unadjusted trial balance is part of the financial statements issued to external decision makers.

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Definitions:

Minimum Cost

The lowest possible expense that can be incurred in the production of a good or service without sacrificing the quality or quantity.

Cost of Producing

The total expense incurred in the manufacture or production of a good, including raw materials, labor, and overhead.

Metal Alloy

A substance composed of two or more metals or a metal and a non-metal, mixed together to attain desired physical or chemical properties.

Fixed Proportions

A production technology assumption where inputs must be used in constant, unchanging ratios to produce outputs.