Which of the Statements Below Is Not True

question 25

Multiple Choice

Which of the statements below is not true?

• A) An adjusted trial balance should show ledger account balances.
• B) An adjusted trial balance can be used to prepare financial statements.
• C) An adjusted trial balance proves the mathematical equality of debits and credits in the ledger.
• D) An adjusted trial balance is prepared before all transactions have been journalized.

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Definitions:

Proportional Income Tax

A tax system where the tax rate is fixed and the same for all income levels, applied uniformly as a percentage of income.

Higher Income

Pertains to individuals or households that earn above average or significantly more money compared to the general population, often associated with greater purchasing power.

Income Tax

A tax levied by governments on individuals or entities' income, where the tax rate often varies by the amount of income or profits reported.

Burden Percentage

Burden percentage often relates to the proportion of costs or taxes borne by an entity, indicating its financial impact.