Which of the Following Statements About a Trial Balance Is

question 21

Multiple Choice

Which of the following statements about a trial balance is true?

• A) A trial balance is one of the financial statements provided to shareholders at the close of the financial period.
• B) A trial balance will detect if a transaction was not recorded.
• C) The sum of the debits is not necessarily the same as the total of the assets side of the balance sheet.
• D) None of the statements are true.

---

Definitions:

Cumulative Cost

The total cost accumulated for a project or an activity over a period of time.

FIFO

First-In, First-Out, an inventory valuation method where goods purchased or produced first are sold first.

Physical Movement

The actual transfer or change in location of goods, which can be relevant in the management of inventory and supply chains.

Perpetual System

An inventory system that continuously updates the balance of inventory after each purchase or sale.