The Trial Balance

question 52

Multiple Choice

The trial balance

• A) includes all accounts with a balance in the ledger.
• B) includes assets, liabilities, capital, withdrawals, revenues and expenses.
• C) ensures that debits equal credits.
• D) All of the above are correct.

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Definitions:

Capital Investment Evaluation

The process of assessing the profitability and risk of proposed investments or projects to make informed decisions about capital allocations.

Strengths and Weaknesses

An analysis or assessment of the positive (strengths) and negative (weaknesses) internal aspects of an organization.

Straight-Line Depreciation

A system for spreading out the cost of a tangible asset in equal yearly amounts across its functional life.

Average Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.