Adjusting Entries Are Not Necessary If the Trial Balance Debit

question 30

True/False

Adjusting entries are not necessary if the trial balance debit and credit column balances are equal.

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Definitions:

Cash Flow

The overall balance of cash flowing in and out of a business, crucially impacting its quick liquidity.

Creditors

Entities (people or institutions) to whom money is owed by the business for goods or services that have been delivered or used but not yet paid for.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interest.

Cash Flow

The entire monetary cycle within and outside a corporation, importantly determining its instant financial stability.