Quiz Ch 02 – T/F Trial Balance as Basis for Financial Statement Preparation
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
The trial balance can be used to prepare financial statements.
The trial balance can be used to prepare financial statements.
An accounts receivable denotes a business’s commitment to repay a debt.
An accrued liability refers to a financial obligation for an expense that has been incurred but not yet paid.
An instance of a revenue account is the cost of goods sold.
What is the final step in the process of journalizing?
What is the initial step in recording a transaction in the journal?
In what order are entries typically listed in the journal?
When do most companies prepare financial statements?
If a debit is mistakenly treated as a credit, what number will the out-of-balance amount on the trial balance be divisible by?
Which type of error can be identified by a trial balance?