What Statement Is True Regarding the Trial Balance

question 110

Multiple Choice

What 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:

Emissions

The release of pollutants or greenhouse gases into the atmosphere from various sources like industrial activities, vehicles, and natural events.

Superfund Clean-up Costs

Expenses associated with the cleanup of contaminated sites under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), often referred to as "Superfund."

Contaminated Property

Real estate that has been polluted or has hazardous materials present, making it potentially dangerous and less valuable.

Federal Law

Legislation enacted by the national government or Congress of a country. In the United States, these laws apply to all states.