Which of the Following Sequences States the Order in Which

question 106

Multiple Choice

Which of the following sequences states the order in which accounts are listed on a trial balance?

• A) Equity → Assets → Liabilities
• B) Liabilities → Assets → Equity
• C) Assets → Equity → Liabilities
• D) Assets → Liabilities → Equity

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Definitions:

Calculate

To determine something mathematically, such as a sum, total, or other numeric value.

Period

A length of time in financial accounting, often used to report earnings or track expenses, such as a quarter or fiscal year.

Days' Sales

A financial metric measuring the average time in days that a company takes to sell its inventory, indicating the efficiency of its sales and inventory management.

Raw Materials Inventory

The stock of base materials used in the manufacturing process before being processed into finished goods.