Quiz Ch 02 – T/F Importance of Trial Balance in Financial Reporting
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
The preparation of a trial balance is mandatory for financial reporting.
The preparation of a trial balance is mandatory for financial reporting.
In James Corporation’s trial balance, the equality between total debits and total credits confirms the absence of errors in the accounts.
Credit entries are recorded on the left margin and debits are indented to the right.
Journal entries may have multiple accounts, as long as debits and credits are equal.
Assets or revenue accounts are typically accounts with a normal debit balance.
Posting involves transferring data from the ledger to the journal.
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.