The Trial Balance Is Used to Determine If

question 135

Multiple Choice

The trial balance is used to determine if:

• A) total assets equal total liabilities.
• B) total debits equal total credits.
• C) total revenues equal total expenses.
• D) total increases in accounts equal total decreases in accounts.

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Definitions:

Disclosed Principal

A principal whose identity is known to a third party. The third party is aware that the agent is making an agreement on behalf of the principal.

Third Party

An individual or group besides the two primarily involved in a transaction or legal situation, often providing additional services or involvement.

Agent

A person or entity authorized to act on behalf of another person or entity, known as the principal, in business transactions or legal matters.

Agreement

One of the four elements necessary for a contract; consists of an offer made by one party, the offeror, and the acceptance of the offer by another party, the offeree.