When constructing a work sheet, accounts are often needed that are NOT listed in the trial balance already entered on the work sheet from the ledger. Where should these additional accounts be shown on the work sheet?
A) They should be inserted in alphabetical order into the trial balance accounts already given.
B) They should be inserted in chart of account by highest dollar value.
C) They should be inserted on the lines immediately below the trial balance totals.
D) They should not be inserted on the trial balance until the next accounting period.

Question

Quizplus · Accepted Answer

The additional accounts should be inserted on the lines immediately below the trial balance totals. This is because the trial balance totals represent the subtotal of all accounts, and any additional accounts should be included in that subtotal. Inserting them alphabetically or by dollar value would disrupt the overall continuity and accuracy of the work sheet. Not including them until the next accounting period would also result in inaccurate financial statements.

When Constructing a Work Sheet, Accounts Are Often Needed That