Which of the Following Statements Regarding a Trial Balance Is

question 59

Multiple Choice

Which of the following statements regarding a trial balance is false?

• A) A trial balance may be taken at any time the postings are up to date.
• B) A trial balance is a list of all accounts with their balances.
• C) A trial balance is the same as a balance sheet.
• D) A trial balance provides a check on the equality of debits and credits.

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Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Accounts Receivable

This is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.

Cash Sales

Transactions where payment is made in cash at the time of sale, without any credit terms.