Which Statement Is incorrect Concerning the Adjusted Trial Balance

question 50

Multiple Choice

Which statement is incorrect concerning the adjusted trial balance?

• A)An adjusted trial balance proves the equality of the total debit balances and the total credit balances in the ledger after all adjustments are made.
• B)The adjusted trial balance provides the primary basis for the preparation of financial statements.
• C)The adjusted trial balance lists the account balances in order of their magnitude.
• D)The adjusted trial balance is prepared after the adjusting entries have been journalized and posted.

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Definitions:

Technological Advance

The development and application of innovative tools, machines, materials, and processes that improve efficiency and productivity.

Allocative Efficiency

A state of resource allocation in which it is impossible to make anyone better off without making someone else worse off, often achieved when the value placed on goods and services by consumers is aligned with the costs of producing them.

Productive Efficiency

A state where an economy or entity can no longer produce more of one good without reducing the production of another good, implying that production occurs at the lowest possible cost.

Creative Destruction

A process in capitalism described by economist Joseph Schumpeter, where outdated products, technologies, or companies are replaced by new innovations.