Which of the Following Statements Is Correct About the Unadjusted

question 130

Multiple Choice

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

• A)Only balance sheet accounts are listed.
• B)Typically,accounts are listed in order of all debit balance accounts first and all credit balance accounts next.
• C)When it balances,transactions have been properly recorded.
• D)Total debits should equal total credits.

---

Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuer, not considered when calculating earnings per share or dividends.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to shareholders, often reinvested in the business.

Dividend Restrictions

Limitations or rules imposed on a corporation's ability to pay dividends to shareholders, often due to legal, contractual, or financial conditions.

Public Corporations

Companies that have issued securities through an initial public offering (IPO) and are traded on at least one stock exchange or in over-the-counter markets.