The Trial Balance Is Used to Determine If

question 169

Multiple Choice

The trial balance is used to determine if:

• A)total assets equal total liabilities.
• B)total debits of all the accounts equal total credits of all the accounts.
• C)total debits of the income statement accounts equal the total credits of the income statement accounts.
• D)total debits of the balance sheet accounts equal the total credits of the balance sheet accounts.

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Definitions:

Cash Price

The amount of money required to purchase an item or service outright without financing.

Compounded Quarterly

Refers to the process of calculating interest on an investment or loan where the interest is added to the principal amount four times a year.

Interest

Money paid at a particular rate for the use of borrowed funds or for delaying the repayment of a debt.

Ethnic Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.