Which of the Following Statements Is True

question 48

Multiple Choice

Which of the following statements is true?

• A)Adjusting entries are recorded after the closing entries have been recorded.
• B)Equal totals in a trial balance guarantees that no errors were made in the recording process.
• C)Debits are equal to credits only after closing entries have been made.
• D)The balance in the retained earnings account in the trial balance will equal the retained earnings balance on the balance sheet only after closing entries have been posted to the general ledger.

---

Definitions:

UCC Approach

A framework derived from the Uniform Commercial Code, guiding transactions involving personal property, goods, and secured transactions in the United States.

Shipment Contracts

Agreements where the seller is obligated to ship goods but does not need to deliver them to a specific destination, transferring risk to the buyer upon shipment.

Sale of Goods

A commercial transaction where the ownership of physical items is transferred from a seller to a buyer in exchange for payment.

Destroyed

To have been completely ruined, damaged beyond repair, or made non-functional.