Quiz Ch 02 – T/F Purpose of Trial Balance in Verifying Financial Statements
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
Trial balance summarizes account balances and verifies debit-credit equality in financial statements.
Trial balance summarizes account balances and verifies debit-credit equality in financial statements.
The trial balance lists account in random order.
Business events are recorded irrespective of their measurable financial impact.
A formal promissory note triggers the recording of an account payable.
Revenue from services performed on the account is recognized only when the cash is received.
The process of recording a transaction in the journal is commonly referred to as booking or journalizing the entry.
In T-Accounts, the left-hand side represents the debit side, while the right-hand side represents the credit side.
In T-Accounts, the balance of an account is determined by subtracting the total credits from the total debits.
The process of posting accounting transactions negates the requirement of journalizing them.
Accounting transactions have an equal effect on both sides of the equation or an offsetting effect on the same side.