A Trial Balance Is Useful Because It Indicates That

question 14

Multiple Choice

A trial balance is useful because it indicates that

• A) owners' equity is correct.
• B) net income is correct.
• C) all entries were made correctly.
• D) total debits equal total credits.

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Definitions:

Theory X

A management assumption that employees are inherently lazy, require close supervision and control, and are motivated primarily by financial incentives.

Theory Y

A management approach based on the belief that employees are intrinsically motivated and will seek out responsibility and development if given the opportunity.

Self-fulfilling Prophecies

Situations where an initially false expectation leads to its own confirmation because the expectation influences behavior to make it true.

Theory X

A management theory assuming that employees are inherently lazy and will avoid work if they can, thus needing to be closely supervised and controlled.