Which of the Following Statements About the Trial Balance Is

question 23

Multiple Choice

Which of the following statements about the trial balance is correct?

• A) The debits and credits must balance.
• B) The equality of credits and debits ensures that no errors were made.
• C) The post-closing trial balance includes temporary accounts only.
• D) The post-closing trial balance is used to prepare the financial statements.

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Definitions:

Output

The total amount of goods and services produced by an economic system or by a firm.

Marginal Benefit

The boost in satisfaction or utility received from consuming one more unit of a good or service.

Efficiency Loss

The reduction in economic efficiency due to factors like market distortions, resulting in resources not being allocated optimally.

Deadweight Loss

refers to the loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved, leading to a reduction in total societal welfare.