The Purpose of a Trial Balance Is To

question 105

Multiple Choice

The purpose of a trial balance is to:

• A)Affirm whether the figures in the account ledgers are correct and balanced.
• B)Prepare a mock up of a real balance sheet.
• C)Review the income statement accounts.
• D)Meet a reporting requirement of the Securities and Exchange Commission SEC).

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Definitions:

Legal Positivism

A school of thought in jurisprudence that holds that laws are rules made by human beings and that there is no inherent or necessary connection between law and morality.

Historical School

A philosophy of law that emphasizes the evolutionary nature of law, focusing on the origins, cultural contexts, and historical development of legal systems.

Local Ordinance

A statute or regulation enacted by a municipal or county authority to govern matters not covered by federal or state law.

Cost-Benefit School

An economic approach that evaluates the outcomes of policies or projects by comparing their costs to their benefits, emphasizing efficiency.