Which of the following statements is correct?
A)The Trial Balance is prepared after preparing the Profit and Loss Account
B)The Trial Balance shows only balances of Assets and Liabilities
C)The Trial Balance shows only nominal account balances
D)The Trial Balance has no statutory importance from the point of view of law

Question

Quizplus · Accepted Answer

The Trial Balance is primarily an internal document used by accountants to ensure that debits and credits match, and it does not have statutory importance in the eyes of the law. It is prepared before the Profit and Loss Account and Balance Sheet, and it includes balances of all types of accounts, not just assets, liabilities, or nominal accounts.

Which of the Following Statements Is Correct