When Is a Trial Balance Usually Prepared

question 176

Multiple Choice

When is a trial balance usually prepared?

• A) after each entry is journalized
• B) before the financial statements are prepared
• C) after the financial statements are prepared
• D) at the beginning of an accounting period

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Definitions:

Capacity To Control

Refers to the ability of an entity to direct the financial and operating policies of another entity so as to benefit from its activities.

Acquiring Entity

A company or individual that purchases or obtains control of another company or asset.