A Trial Balance Can Be as Informal as an Adding

question 172

True/False

A trial balance can be as informal as an adding machine tape with the account titles penciled in next to the debit and credit amounts.

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Definitions:

Legal Capital Approach

Method of preparing Paid-In Capital by listing the legal section first.

Stock Dividend

It's a dividend payment made in the form of additional shares rather than a cash payout, representing a reinvestment of company earnings.

Stock Split

An action by a company to divide its existing stock into multiple shares to boost liquidity without changing shareholders' equity.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.