A trial balance is a(n)
A)optional financial statement used only by creditors.
B)tool used to prove the equality of debits and credits in the general ledger.
C)list of accounts and their balances taken from the chart of accounts.
D)financial statement which can be used in place of a balance sheet.

Question

Quizplus · Accepted Answer

A trial balance is a tool that lists all the accounts and their balances in the general ledger to check if the total debits equal the total credits. It is not optional and is necessary for preparing financial statements like the balance sheet and income statement. Therefore, options A, C, and D are incorrect.

A Trial Balance Is A(n)