Which of the Following Statements Regarding a Trial Balance Is

question 5

Multiple Choice

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

• A)A trial balance may be prepared at any time during the accounting period.
• B)A trial balance is a list of all accounts used in a business with their balances.
• C)A trial balance shows that total debits equals total credits.
• D)All of the above are true.

---

Definitions:

Debit Balance

An accounting entry that occurs when the total of debits in an account exceeds the total of credits, which is common in asset and expense accounts.

Gross Profit

The financial measure obtained by subtracting the cost of goods sold from revenue.

Repossessed Inventory

Goods taken back by a seller or lender from the buyer, typically due to failure to make required payments.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.