The Unadjusted Trial Balance

question 43

Multiple Choice

The unadjusted trial balance:

• A)is a preliminary financial statement for external users.
• B)generally lists account names in alphabetical order.
• C)is created to determine that total debits equal total credits.
• D)demonstrates that the accounting process is error free.

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Definitions:

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating how much money each share makes.

Periodic Basis

An accounting method where transactions are recorded and financial statements are prepared at regular, specific intervals, such as monthly, quarterly, or annually.

Bondholders

Individuals or institutions that hold the debt securities issued by corporations or governments, entitled to receive interest payments and the principal repayment.

Premium Amortization

The gradual reduction of the premium paid above the par value of a bond, allocated over the bond's life.