A Trial Balance Proves

question 69

Multiple Choice

A trial balance proves

• A)the mathematical equality of debits and credits after the posting process.
• B)the ledger is posted correctly.
• C)that all transactions have been recorded correctly.
• D)that all transactions have been posted.

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Definitions:

Accounts Payable

Obligations a business has to its creditors, arising from the purchase of goods and services on credit.

Perpetual Inventory System

A system for accounting inventory that instantly captures the transactions of buying or selling via computerized point-of-sale systems and software for enterprise asset management.

Gross Method

An accounting practice where purchases are recorded at their full invoice price without deducting discounts that may later be received.

Merchandise

Goods that are bought and sold within a retail or wholesale environment, comprising the primary source of revenue for merchandising companies.