What Is True About the Trial Balance

question 49

Multiple Choice

What is true about the trial balance?

• A)It contains a detailed listing of every transaction during a period.
• B)It may contain whatever accounts the accountant wishes to include.
• C)Payroll accounts do not appear on it because of their changeable nature.
• D)The total of the debits must equal the total of the credits.

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Definitions:

Income Activities

Activities that generate revenue for a business through its operations, sales, and other income sources.

Primary Financial Statements

Core financial statements including the balance sheet, income statement, and cash flow statement that summarize a company's financial position and performance.

Proprietorship

A business entity that is owned and run by one individual where there is no legal distinction between the owner and the business.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.