On a Trial Balance, If the Debit and Credit Column

question 40

Multiple Choice

On a trial balance, if the Debit and Credit column totals are equal, then:

• A) All entries from the journal have been posted to the ledger correctly.
• B) The balance sheet would be correct.
• C) All ledger account balances are correct.
• D) Equal debits and credits have been recorded for transactions.
• E) All transactions have been recorded correctly.

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Definitions:

Financial Advantage

Financial advantage refers to the benefit obtained from making a financial decision that results in positive outcomes, such as cost savings or increased revenue.

Costs Associated

Expenses that are linked to a specific product, activity, or department within a business.

Special Order

An order for a product or service that is outside of the company's regular operations or production schedule, often requiring special pricing or conditions.

Excess Capacity

Refers to a situation where a company has more production capability available than is necessary to meet demand, often resulting in unused resources or facilities.