176. Which of the following is not true about the unadjusted trial balance\'? A.

Question

176. Which of the following is not true about the unadjusted trial balance'? A. An unadjusted trial balance may only include a preliminary amount for income tas. B. An unadjusted trial balance might balance even if there is a mistake. C. An unadjusted trial balance does not yet include end-of-the-accounting period adjustments. D. An unadjusted trial balance is part of the financial statements issued to external decision makers 177. Which of the following is an example of an error that would cause the trial balance to be out of balance? A A journal entry was posted as a debit to Cash for $525 and credited to Accounts Reccivable for $552 A Journal entry was posted as a debit to Cash and a credit to Sales Revenue when the company received a customer payment on account C. A journal entry was D. A transa posted as a credit to Wages Expense and a debit to Wages Payable. ction was not recorded at all.

Explanation / Answer

176. Which of the following is not true about the unadjusted trial balance ?

Option D An unadjusted trial balance is part of the financial statements issued to external decision makers is correct answer. Because Financial statements which are issued to external decision makers are prepared on the basis of adjusted trial balance.

177. Which of the following is an example of an error that would cause the trial balance to be out of balance ?

Option A A journal entry was posted as a debit to cash for $525 and credited to Accounts Receivable for $552 is correct answer. Because the unadjusted trial balance would balance as long as debits = credits in the transactions that were recorded. Omitting a transaction or using uncorrect accounts or amounts would not cause the trial balance to be out of balance.

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