Which of the Following Statements About the Trial Balance Is

question 23

Multiple Choice

Which of the following statements about the trial balance is correct?

• A) The debits and credits must balance.
• B) The equality of credits and debits ensures that no errors were made.
• C) The post-closing trial balance includes temporary accounts only.
• D) The post-closing trial balance is used to prepare the financial statements.

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Definitions:

Conditions of Risk

Circumstances in which there is uncertainty about the outcomes of actions, potentially resulting in loss or harm.

Uncertainty

A condition of limited knowledge where it is impossible to exactly describe an existing state, future outcomes, or more than one possible outcome.

Unanticipated Ways

Events or outcomes that occur in a manner not previously expected or predicted.

Avoided

The action of deliberately keeping away from or not doing something.