A trial balance that balances is useful because it indicates with certainty that:

Select one:

A.All entries into accounts during the period were made correctly.

B.All accounts have normal balances.

C.Total debits in the general ledger equal total credits.

D.All of the above

If a company paid off $200,000 of its accounts payable, the effect of this transaction as reflected in the accounting equation are:

Select one:

A.Total assets decrease and total liabilities increase

B.Total assets and total liabilities increase

C.Total assets and total liabilities decrease

D.Total assets, total liabilities and stockholders' equity are all unchanged

A company incurred $60,000 (to be paid next year) for the current year's advertising activities. What would the effect of this transaction on the current year's accounting equation?

Select one:

A.$60,000 increase in Assets; No effect on Liabilities; $60,000 increase in Stockholders' Equity

B.No effect on Assets; $60,000 decrease in Liabilities; $60,000 increase in Stockholders' Equity

C.$60,000 increase in Assets; $60,000 increase in Liabilities; No effect on Stockholders' Equity

D.No effect on Assets; $60,000 increase in Liabilities; $60,000 decrease in Stockholders' Equity