Which of the Following Statements Is True of a Trial

question 73

Multiple Choice

Which of the following statements is true of a trial balance?

• A)A trial balance has the same format as a balance sheet.
• B)A trial balance presents data in debit and credit format.
• C)A trial balance shows total amounts of assets, liabilities, but not equity.
• D)A trial balance is prepared after the balance sheet.

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Definitions:

Labor-Hour

A labor-hour represents an hour of work performed by an employee, typically used as a basis for allocating labor costs or measuring productivity.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and factory equipment depreciation.

Underapplied

A situation in cost accounting where the allocated or applied costs are less than the actual costs incurred.

Overapplied

Overapplied refers to the situation where the amount of overhead allocated to products is more than the actual overhead incurred.