A trial balance can be distributed to stockholders in place of the balance sheet.

Question

Quizplus · Accepted Answer

A trial balance is a list of all accounts and their balances at a given date, but it does not provide a complete picture of the financial position of a company. A balance sheet is a statement of assets, liabilities, and equity at a particular point in time, which gives a more comprehensive view of a company's financial health. Therefore, a trial balance cannot be used as a replacement for a balance sheet, and stockholders should be provided with a balance sheet instead.

A Trial Balance Can Be Distributed to Stockholders in Place