Which of the Following Is a False Statement About the Unadjusted

question 22

Multiple Choice

Which of the following is a false statement about the unadjusted trial balance?

• A)It is not a financial statement for external reporting purposes.
• B)It provides data in a convenient form for preparing the adjusting entries and financial statements.
• C)It provides a check of the equality of the debits and credits of the ledger accounts after transactions have been journalized and posted.
• D)It provides a listing of balance sheet accounts only.

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Definitions:

Capital Deficiencies

Capital deficiencies occur when a company's financial resources and assets are not sufficient to cover its liabilities and debts.

Income Ratios

Financial metrics that compare various forms of income to another number on the company's financial statement, often used to assess financial health and profitability.

Capital Balances

The amount of money that owners have invested in a business, reflected in the equity section of the balance sheet.

Partners' Capital Statement

A financial statement that shows the changes in the account balances of each partner's equity in a partnership over a period.