Which of the Following Statements Is TRUE of a Trial

question 6

Multiple Choice

Which of the following statements is TRUE of a trial balance?

• A) A trial balance is the first step in the accounting cycle.
• B) A trial balance is also known as a balance sheet.
• C) A trial balance is a list of all accounts with their balances.
• D) A trial balance is also known as the chart of accounts.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded by the end of the accounting period.

Adjusting Entry

An accounting entry made at the end of an accounting period to record earnings or expenses that have occurred but are not yet entered in the accounts.

Asset Account

An account that shows the value of the assets a company controls, which can include cash, equipment, and real estate.

Accrued Interest

Interest that has been incurred but not yet paid, often related to bonds or loans.