Which of the following best describes a trial balance?It is a list of balances on the booksShows the financial position of a businessIt is a special accountShows all the entries in the books (2024)

FAQs

What best describes a trial balance? ›

The best description of a trial balance is a statement that shows all the entries in the books. A trial balance is a statement that contains all the balances of real, nominal, and personal accounts.

What is a Trial Balance? A trial balance is a report that lists the balances of all general ledger accounts of a company at a certain point in time. The accounts reflected on a trial balance are related to all major accounting items, including assets, liabilities, equity, revenues, expenses, gains, and losses.

A Trial Balance is a check on the arithmetic all accuracy of posting to the ledger accounts. If the debit and credit totals are equal, then arithmetically the ledger entries are correct. It provides a convenient list of ledger balances from which final accounts can be prepared.

A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

The correct answer is Statement. A trial balance is a financial statement that shows the current closing balances of all accounts in the general ledger.

A trial balance is a tabular format that shows all of the ledger balances in one place. It contains transactions made during the year as well as the opening and closing balances of ledgers, as every organisation must analyse its financial condition over a specified period of time.

Purpose of a Trial Balance

To check the arithmetical accuracy of the transactions and the ledger accounts. To determine the ledger account balances. It serves as evidence that the double entry system has complied duly. It facilitates the preparation of the financial statements.

Answer and Explanation:

It is not true that a trial balance and a balance sheet are essentially the same document. The trial balance shows the balance of all accounts a business has including revenue and expenses while the balance sheet will only show the balance of permanent accounts.

The trial balance formula is total debits = total credits. This equation ensures that the total of the debit column matches the total of the credit column. If they do not match, it indicates that an error has been made.

A trial balance is a statement that lists all the general ledger accounts and their respective balances at a specific point in time. It is used to ensure that the total debits equal the total credits in the accounting system.

Which of the following would cause a trial balance to be out of balance? ›

Explanation: The trial balance will be out of balance if only the credit of a transaction was recorded. The trial balance lists the total debits and the total credits to ensure that they are balanced.

A trial balance is a list of accounts and their balances at a given time. 2. The primary purpose of the trial balance is to prove the mathematical equality of debits and credits after posting.

Trial balances have three main uses: identifying errors, providing a summary of account performance, and helping accounting teams prepare financial statements.

-The primary purpose of the trial balance is to prove the mathematical equality of debits and credits after posting. -A trial balance may uncover errors in journalizing and posting. -A trial balance is useful in the preparation of financial statements.

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