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3 years ago

When should the trial balance totals differ?

Business

1 answer:

Natalka [10]3 years ago

5 0

Answer:

C. If drawn up halfway through the financial year

Explanation:

A business prepares a trial balance to check on the accuracy of the double-entry system. The trial balance detects any mathematical errors that may have occurred during recording or posting information in various accounts.

A trial balance lists all the accounts as obtained from a firm's general ledger. It sums up the closing balances of all debits on one column and credits on the other. If the debits and credits balance, the firm's ledger book is presumed not to have mathematical errors.

The preparation of a trial balance is at the end of a financial period, before the main financial statements. It uses the closing balances of the ledger accounts. If some accounts are not closed, then a trial balance will not balance.

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The answer to your question would be false

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4 years ago

A financial services firm decided to assess the return on its social investment in an educational program in local schools. As p

zepelin [54]

Answer: value creation

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Hence from the above we can conclude that the correct option is D.

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4 years ago

Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following d

Marina CMI [18]

Explanation:

a. Current assets = $600000

Current ratio = 3

Current ratio = Current assets ÷Current liabilities = 3

⇒Current assets = 3 Current liabilities

Given that

Quick ratio = 2.25

Also we know that

Quick assets = Quick assets / Current liabilities = 2.25

therefore, Quick assets = 2.25 Current liabilities

Also, Quick assets = Current assets - Inventory

then,

2.25 current liabilities = 3 Current liabilities - $150000

⇒$150000 = 0.75 Current liabilities

Hence, Current liabilities = $200000

Current assets = 3 Current liabilities

= 3 × $200000

= $600000.

b. Calculating for Shareholders equity we get

Shareholders equity = $560000

We know that ,

Total debt + Total equity = Total assets

Debt to equity ratio = 1.5

Also, Total debt / Shareholders equity = 1.5

Debt = 1.5 Shareholders equity

1.5 Shareholders equity + 1 Equity = $1400000

2.5 Shareholders equity = $1400000

Shareholders equity = $560000.

Now calculating for Non current assests

c. Non Current assets = $800000

Total assets = Current assets + Non current assets

$1400000 = $600000 + Non current assets

Non current assets = $800000.

d. Long term liabilities = $640000.

Total assets = Total liabilities + Shareholders equity

$1400000 = Current liabilities + Long term liabilities + Shareholders equity

$1400000 = $200000 + Long term liabilities + $560000

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7 0

3 years ago

g Samco signed a 5-year note payable on January 1, 2018, of $ 475 comma 000. The note requires annual principal payments each

Tanya [424]

Answer:

B. a debit to Interest Expense for $ 42 comma 750.

C. a credit to Cash of $ 137 comma 750.

Explanation:

Payment of Note Payable includes the payment of interest on the outstanding balance and principal amount of the note. In this question it is the first payment of the note payable, so the outstanding balance is the face value of the note, Interest is calculated using this value, A fix payment of $95,000 is also made.

As per given data

Principal Payment = $95,000

First Interest payment = $475,000 x 9% = $42,750

Total Payment = $95,000 + $42,750 = $137,750

Journal Entry for first payment

Dr. Interest Expense $42,750

Dr. Not Payable $95,000

Cr. Cash $137,750

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3 years ago

If a company provides an online service that delivers physical products and services but does not exist as a brick-and-mortar st

grin007 [14]

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The advantage of such brands is that they get to save on the rental and other property costs related to establishing brick-and-mortar stores because they are online.

3 0

3 years ago