Which of the Following Statements Regarding a Trial Balance Is

question 107

Multiple Choice

Which of the following statements regarding a trial balance is TRUE?

• A) A trial balance may be taken at any time during the accounting period.
• B) A trial balance is a list of all accounts with their balances.
• C) A trial balance shows that total debits equals total credits.
• D) All of the above are true.

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Definitions:

Present Obligation

A duty or responsibility that is expected to be settled in the future, recognized as a liability.

Past Event

An event or transaction that has occurred prior to the balance sheet date, impacting the financial position or performance of an entity.

Reliable Estimate

A calculation or assessment regarding figures or outcomes that is deemed dependable based on available evidence.

Contingent Liability

A contingent liability is a potential financial obligation that may arise depending on the outcome of an uncertain future event.