Which of the Following Statement Is True Regarding the Trial

question 36

Multiple Choice

Which of the following statement is true regarding the trial balance?

• A)Incorrectly recording a cash sale as a sale on account would not cause the trial balance to be out of balance.
• B)The income statement is prepared using the post-closing trial balance.
• C)A balance of debits and credits ensures that all transactions have been recorded correctly.
• D)Trial balances are only prepared at the end of an accounting period.

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Definitions:

AD1 to AD2

Represents a shift from one aggregate demand curve to another in macroeconomic models, indicating changes in the total demand for goods and services in an economy.

Aggregate Demand

The gross requirement for products and services within an economy, priced at an overall level over a certain timeframe.

AD4 to AD5

No specific universally recognized definition; possibly refers to a shift or movement from one aggregate demand curve (AD4) to another (AD5) in economics.

Equilibrium GDP

is the level of Gross Domestic Product where aggregate supply equals aggregate demand in an economy.