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. Trial balances are only prepared at the end of an accounting period.
D. A balance of debits and credits ensures that all transactions have been recorded correctly.


Answer: A

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On January 2, 2018, the Rambler Company purchased 40% of the outstanding common stock of the AMC Corporation for $2,000,000. AMC's net assets had a book value of $3,900,000 as of January 2, 2018. AMC's buildings were undervalued by $350,000, their land was overvalued by $75,000, and their inventory was undervalued by $145,000.Required:Determine the amount of goodwill resulting from the purchase of the AMC stock. 

What will be an ideal response?

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Indicate whether the statement is true or false

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Which data types are typically found in the human resources department?

A. Employee data, promotion data, vacation data. B. Transactional data, purchasing data, payroll data, tax data. C. Promotion data, sales data, advertising data. D. Investment data, monetary data, reporting data.

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Indicate whether the statement is true or false

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