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.

---

Definitions:

Factory Overhead

The indirect manufacturing costs that are not directly tied to the production of goods, such as maintenance, utilities, and salaries for support staff.

Depreciation

Depreciation is the accounting method of spreading out the cost of a tangible asset over its useful life, recognizing the asset's gradual loss of value over time.

Worker's Tools

Equipment and tools that are required and used by a worker to perform their job.

Administrative Facilities

Infrastructure and buildings utilized by an organization to support its administrative functions, including offices, headquarters, and other operational spaces.