25. The accounting equation must remain in balance a throughout each step in the accounting cycle b. only when journal entries are recorded C only at the time the trial balance is prepared. d. only when formal financial statements are prepared 26. Which of the following criteria must be met before an event or item should be recorded for accounting purposes? a. The event or item can be measured objectively in financial terms. b. The event or item is relevant and reliable. c. The event or item is an element. d. All of these must be met 27. Which of the following is not an internal event? a. Depreciation b. Using raw materials in the production proce C. Dividend declaration and subsequent payment d. All of these are internal transactions 28. A general journal a. chronologically lists transactions and other events, expressed in terms of debits and credits. b. contains one record for each of the asset, liability, stockholders' equity, revenue, and expense accounts c. lists all the increases and decreases in each account in one place. d. contains only adjusting entries 29. A journal entry to record a payment on account will include a a. debit to Accounts Receivable. b. credit to Accounts Receivable. c. debit to Accounts Payable. d. credit to Accounts Payable. 30. Which of the following errors will cause an imbalance in the trial balance? a. Omission of a transaction in the journal b. Posting an entire journal entry twice to the ledger. C. Posting a credit of $720 to Accounts Payable as a credit of $720 to Accounts Receivable. d. Listing the balance of an account with a debit balance in the credit column of the trial balance