Which Statement Below Is Incorrect

question 15

Multiple Choice

Which statement below is incorrect?

• 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 after the financial statements are completed.

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Definitions:

Constant Cost Industry

An industry in which the costs of production, including the prices of inputs, do not change as the total output of the industry changes.

Total Cost

The complete cost of production, including both fixed and variable costs.

Unit Price

The cost per unit of a product or service.

Constant Cost

An economic scenario where the cost of producing an additional unit of a good or service remains unchanged, regardless of the scale of production.