The Primary Purpose of the Trial Balance Is to Test

question 53

Multiple Choice

The primary purpose of the trial balance is to test the

• A)recording of transactions.
• B)analysis of transactions.
• C)equality of debit and credit balances in the ledger.
• D)equality of debit and credit balances in the journal.

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Definitions:

Industry

A group of companies or organizations producing similar goods or services, often characterized by competition and innovation.

Positive Statement

An objective statement based on facts and evidence that can be tested and verified.

Value Judgment

An assessment based on personal views, ethical standards, or aesthetics, rather than on measurable or objective criteria.

Deduction

An amount that is subtracted from someone's gross income, reducing the taxable income and thus the amount of tax owed.