The Trial Balance

question 60

Multiple Choice

The trial balance:

• A) lists only the accounts which are used to prepare the balance sheet.
• B) shows only credit balances.
• C) shows only debit balances.
• D) shows the current date.
• E) lists only the accounts which are used to prepare the income statement.

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Definitions:

Par Value

The nominal or face value of a stock or bond as stated by the issuing company, often used in legal documents.

Market Price

The current price at which an asset or service can be bought or sold in a public market.

Cash Dividend

A payment made by a company out of its profits to its shareholders in cash, typically on a regular basis.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the issuing company, reducing the amount of stock on the open market.