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.

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Definitions:

Corrective Advertising

Advertising designed to correct previous misleading or deceptive advertisements.

Federal Trade Commission Act

A United States federal law established in 1914 to promote consumer protection and to eradicate anticompetitive business practices.

Deceptive Advertising

Marketing practices that mislead or trick consumers into buying or using a product or service through false claims, incomplete information, or other misleading means.

Independent Testing

Testing conducted by an external or third-party organization to ensure objectivity and impartiality, usually for quality control or compliance purposes.