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:

Hospice Approach

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A legal document that grants a designated person the authority to act on another’s behalf in legal and financial matters, continuing even if the principal becomes incapacitated.

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A legal document allowing individuals to outline their preferences for medical treatment in the event they cannot make decisions for themselves.