Which of the Following Statements Is True Regarding the Trial

question 122

Multiple Choice

Which of the following statements is true regarding the trial balance?

• A)Incorrectly recording a cash sale as a sale on account would not cause the trial balance to be out of balance.
• B)The income statement is prepared using the post-closing trial balance.
• C)A balance of debits and credits ensures that all transactions have been recorded correctly.
• D)Trial balances are only prepared at the end of an accounting period.

---

Definitions:

Third Quartile

The value below which 75% of the data fall, often represented as Q3 in statistics.

First Quartile

The 25th percentile of a data set, below which lies 25% of the data.

Skewness

A measure of the shape of a data distribution. Data skewed to the left result in negative skewness; a symmetric data distribution results in zero skewness; and data skewed to the right result in positive skewness.

Skewed Right

A distribution of data where most values are concentrated on the left side, with the tail extending to the right.