A Trial Balance Checks the Equality of Debits and Credits

question 47

True/False

A trial balance checks the equality of debits and credits.

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Definitions:

Accounts Receivable

The total outstanding invoices a company has or the amount of money owed by its customers for credit sales.

Normal Balance

The side of the account (debit or credit) where increases to the account are recorded, based on the double-entry accounting system.

T Account

A graphical representation in the shape of a "T" used in accounting to depict the debit and credit transactions of a particular account.

Horizontal Analysis

A financial analysis technique that compares historical data or ratios across different periods to identify trends and growth.