How many of the following statements regarding trial balances are true?The post-closing trial balance is used to prepare the financial statements.If debits equal credits in the unadjusted trial balance, no errors have been made in preparing and posting journal entries.More than one trial balance is prepared during the completion of the accounting cycle.Group of answer choicesA. NoneB. OneC. TwoD. Three

Answered: How many of the following statements…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

How many of the following statements regarding trial balances are true?

- The post-closing trial balance is used to prepare the financial statements.
- If debits equal credits in the unadjusted trial balance, no errors have been made in preparing and posting journal entries.
- More than one trial balance is prepared during the completion of the accounting cycle.

Group of answer choices

A. None

B. One

C. Two

D. Three

Expert Solution

Step 1

The post-closing trial balance is used to prepare the financial statements. but trial balance does not provide assurance that all journal entries are recorded correctly and also it is prepared only once in one accounting period.