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:

Unsecured Loan

A loan that doesn't require any collateral and is based primarily on the borrower's creditworthiness and ability to repay.

Beginning Inventory

The price of merchandise available for purchase at the commencement of a fiscal period.

Freight-in

The cost of shipping goods into a business, which is often included in the cost of inventory.

Cost of Goods

Cost of Goods refers to the direct costs attributable to the production of the goods sold by a company, including materials and labor.