Which Statement Relating to a Trial Balance Is Incorrect

question 37

Multiple Choice

Which statement relating to a trial balance is incorrect?

• A) A trial balance may be prepared at any time to test the equality of debits and credits in the ledger.
• B) The fact that the total of the debit column equals the total of the credit column does not guarantee that the ledger if free from errors.
• C) A trial balance reports the financial performance of an entity.
• D) A trial balance is a list of all the accounts in the ledger with their current balances.

---

Definitions:

Studentized Residuals

Residuals in a statistical model that have been standardized by dividing by an estimate of their standard deviation.

Least-Squares Regression

A statistical method used to determine a line of best fit by minimizing the sum of the squares of the vertical distances of the points from the line.

Male Employee

A person identified as male working in a professional or occupational setting.

Studentized Residuals

Residuals divided by an estimate of their standard deviation, used in statistics to help identify outliers in a regression analysis.