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:

Insurance Money

Funds received from an insurance company either as a claim settlement or benefit payment.

Short-rate Penalty

A Short-rate Penalty is a fee charged to policyholders who cancel their insurance policy before it expires, calculating the refund using a method that is less favorable than pro-rata.

Annual Premiums

The amount paid on an annual basis for insurance coverage, which can pertain to various types of insurance policies.

Moving Vans

Moving Vans are large vehicles used for transporting household or commercial goods from one location to another during relocation.