The trial balance is prepared from
A) the beginning balance in the ledger.
B) the transactions during the year.
C) ending balances in the ledger.
D) a summary of all debit balance accounts.

Question

Quizplus · Accepted Answer

The trial balance is prepared from the ending balances in the ledger, as it is a list of all accounts and their balances at a specific point in time (usually the end of the accounting period). It's purpose is to ensure that the total debits equal the total credits and to aid in the preparation of financial statements. The beginning balance in the ledger and the transactions during the year are used to determine the ending balances in the ledger. A summary of all debit balance accounts would not accurately reflect the total debits and credits for the entire ledger.

The Trial Balance Is Prepared from