A Trial Balance That Is "In Balance" Proves

question 74

Multiple Choice

A trial balance that is "in balance" proves:

• A) the equality of the debits and credits
• B) all journal entries were properly posted to the ledger
• C) all transactions were properly recorded during the accounting period
• D) none of the above

---

Definitions:

Perfect Competitor

A theoretical market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can influence the market price.

Imperfect Competitor

A market participant that cannot dictate the market prices but can influence them through its product or service differentiation.

Wage Rate

The standard amount of compensation given to employees for their labor, typically expressed as an hourly, daily, or piece rate.

Perfect Competitor

A market situation where many small firms produce identical products, allowing them free entry and exit from the market, leading to price takers.