Which of the following statements is true regarding the trial balance?
A)Incorrectly recording a cash sale as a sale on account would not cause the trial balance to be out of balance.
B)The income statement is prepared using the post-closing trial balance.
C)A balance of debits and credits ensures that all transactions have been recorded correctly.
D)Trial balances are only prepared at the end of an accounting period.

Question

Quizplus · Accepted Answer

Recording a cash sale as a sale on account affects the classification of accounts but does not affect the balance of debits and credits, so the trial balance would still balance.

Which of the Following Statements Is True Regarding the Trial