Which of the following statement 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

Even if the debit and credit totals on the trial balance are equal,there may be errors in the accounting records.For example,equal trial balance totals would not disclose errors like the following: failure to record transactions;misclassifications (such as debiting the wrong account);or incorrectly recording the amount of a transaction.The income statement is prepared using the adjusted trial balance.

Which of the Following Statement Is True Regarding the Trial