The primary purpose of the trial balance is to test the
A) recording of transactions.
B) analysis of transactions.
C) equality of debit and credit balances in the ledger.
D) equality of debit and credit balances in the journal.
C
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Which of the following statements is true of personal service contracts?
A. Personal service contracts include destruction to subject matter that can result in nonperformance. B. Specific performance is generally granted for personal service contracts because it does not require a form of involuntary servitude. C. Personal service contracts are the only contracts that terminate with the promisor's death. D. Personal service contracts recognize commercial impracticability as an excuse when unforeseeable developments take place.
Payment is made for the telephone bill which was recorded previously. What effect does this transaction have on the accounting equation?
A) Assets and liabilities increase B) Assets and retained earnings increase C) Liabilities increase and contributed capital decreases D) Assets and liabilities decrease
Under which of the following circumstances can the mistaken party rescind a contract when
there is a unilateral mistake? A) The mistake did not become known until after the formation of the contract B) The mistake has a material effect on the value of the contract C) The mistaken party first held the mistaken belief prior to entering into the contract D) The mistaken belief is one that a reasonable person would have E) The nonmistaken party was aware of the mistaken party's belief
A type of unsecured promissory note issued by large, financially strong firms is called:?
A. ?trade credit. B. ?commercial paper. C. ?a compensating balance. D. ?revolving credit. E. ?a promissory note.