Which of the Following Statements About the Unadjusted Trial Balance

question 193

Multiple Choice

Which of the following statements about the unadjusted trial balance is not correct?

• A) It might only include a preliminary amount for income tax expense.
• B) It might balance even if there is a mistake.
• C) It does not yet include end-of-the-accounting period adjustments.
• D) It is part of the financial statements issued to external decision makers.

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Definitions:

Legal Case

A dispute between opposing parties resolved in a court of law.

Pay Dividends

The act of distributing a portion of a company's profits to its shareholders at intervals, typically quarterly or annually.

Stockholders

Individuals or entities that own shares in a corporation, giving them certain rights such as voting on corporate matters.

Transaction Costs

Expenses incurred when buying or selling goods and services, such as fees and commissions.