Which Statement Is True About an Adjusted Trial Balance

question 116

Multiple Choice

Which statement is true about an adjusted trial balance?

• A)It is prepared before adjusting entries.
• B)Revenue accounts and expense accounts should not appear on the adjusted trial balance.
• C)Balance sheet items are presented before income statement items.
• D)Accumulated depreciation should equal depreciation expense.

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Definitions:

Inferior Goods

Goods whose demand decreases when consumers' income increases. They are the opposite of normal goods, which see increased demand with higher income.

Income Increase

A rise in the amount of money received, especially by workers or businesses, over a specific period.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing to buy.

Substitute

a product or service that can be used in place of another to satisfy similar needs or desires.