Which of the Following Is Incorrect Regarding a Trial Balance

question 176

Multiple Choice

Which of the following is incorrect regarding a trial balance?

• A) It proves that the debits equal the credits after posting.
• B) It proves that the company has recorded all transactions.
• C) A trial balance uncovers errors in journalizing and posting.
• D) A trial balance is useful in the preparation of financial statements.

---

Definitions:

Division of Labour

The distribution of various segments of a production task among different individuals to enhance productivity.

Time Crunch

A situation characterized by a pressing or limited amount of time to complete tasks or activities.

Interlocking Directorates

The practice of members of a corporate board of directors serving on the boards of multiple corporations simultaneously, often leading to conflicts of interest or consolidation of power.

Capitalism

An economic system where private individuals own and control the means of production, with the goal of making profits.