What Statement Is True Regarding the Trial Balance

question 29

Multiple Choice

What statement is true regarding the trial balance?

• A)A balance of debits and credits ensures that all transactions have been recorded correctly.
• B)The income statement is prepared using the post-closing trial balance.
• C)Incorrectly recording a cash sale as a sale on account would not cause the trial balance to be out of balance.
• D)Trial balances are only prepared at the end of an accounting perioD.Debiting the accounts receivable account instead of the cash account would not cause the trial balance to be out of balance. It would only cause the balances in those two accounts to be inaccurate.

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Definitions:

Task Analysis

A systematic process of breaking down a job into its component tasks in order to identify how it can be done effectively.

Costs Estimation

The process of predicting or approximating the cost of completing a project or producing a good.

Engineering Method

A systematic approach to planning, designing, and managing projects by applying engineering principles and practices.

Least Squares

A mathematical method used to find the best-fitting curve to a given set of points by minimizing the sum of the squares of the offsets ("the residuals") of the points from the curve.