Which of the Following Statements About the Accounting Cycle Is

question 158

Multiple Choice

Which of the following statements about the accounting cycle is correct?

• A) A trial balance is included in the full set of external financial statements.
• B) If debits equal credits in the unadjusted trial balance, you have made no errors in preparing and posting journal entries.
• C) The balances for each account reported on an unadjusted trial balance are determined by adding the amounts on the "+" side and subtracting the amounts on the "-" side of each ledger or T-account.
• D) GAAP allows companies to choose between cash basis and accrual basis of accounting.

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Definitions:

Margin of Error

The maximum amount by which the sample results are expected to differ from the true population value.

Normally Distributed

Describes a distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values from the mean.

Skewed

Skewed describes a distribution that is asymmetrical, where its tail extends more on one side than the other, often used in statistical data analysis.