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:

Long-Term Investment

An investment held for an extended period, typically more than a year, to earn interest, dividends, or capital gains.

Maturity

Maturity indicates the date on which the principal or final payment is due to be paid on a loan, bond, or other financial instrument.

Sinking Fund

A fund that accumulates cash to pay off bonds when they are retired.

Interest Revenue

Income earned from lending money or investments in interest-bearing financial instruments.