A Trial Balance That Is "In Balance" Proves

question 98

Multiple Choice

A trial balance that is "in balance" proves:

• A) the equality of the debits and credits
• B) all journal entries were properly posted to the ledger
• C) all transactions were properly recorded during the accounting period
• D) that the financial statement cannot be prepared using the account balances

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Definitions:

Recession

A noticeable drop in economic performance affecting the entire economy, enduring longer than several months, usually evident in real GDP, real income, employment, industrial output, and wholesaleretail sales.

Variance

A statistical measurement of the spread between numbers in a data set, indicating how much the numbers differ from the average.

Variance

In statistics, the measure of dispersion within a data set, representing the average of the squared differences from the mean.

Recessionary Period

A phase in the business cycle where the economy declines and is marked by reduced industrial activity, widespread unemployment, and falling prices or stagnant growth.