1.
A trial balance is the summary of all the ledger accounts. The trial balance is prepared to check the total balance of the debit column with the total of the balance of the credit column, which must be equal. The trial balance is usually prepared to check accuracy of ledger balances, and before the preparation of financial statements.
To discuss: Whether the person BD is behaving ethically, and to discuss the reason behind it.
2.
To identify: The persons who are affected by Person BD’s decision.
3.
To discuss: The way in which Person BD should have handled this situation.
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Chapter 2 Solutions
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