Reference no: EM132625101

Question 1: The trial balance in which total debits equal total credits provides a proof that:

A. The ledger is in balance

B. The transactions have been correctly analyzed and recorded in proper accounts

C. The correct debit and credit balances have been computed for each account

D. No transaction has been completely omitted during the posting process

E. All of the above

Question 2: The amount of retained earnings at the end of a period is equal to:

A. Retained earnings at the beginning of the period + Dividends declared - Net income

B. Net income + Dividends declared - Retained earnings at the beginning of the period

C. Retained earnings at the beginning of the period + Net income - Dividends declared

D. Retained earnings at the beginning of the period + Net income - Operating expenses