The Trial Balance Will Not Balance If a Purchase of Supplies

question 69

True/False

The trial balance will not balance if a purchase of supplies is charged to Supplies Expense rather than Supplies.

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Definitions:

Consolidated Statement

Financial statements that aggregate the assets, liabilities, and operations of a parent company and its subsidiaries.

Equity Earnings

The portion of an investee's profits or losses that is attributed to the investor based on their ownership percentage.

Goodwill Impairment

A write-down of the goodwill account on a company's balance sheet if the fair value of a business unit falls below its carrying value.

Consolidated Shareholders' Equity

The total equity in a company, combining the equity holdings across all subsidiaries and the parent company.