Which of the following best describes a trial balance?
A) It is a required financial statement.
B) It is a financial statement that can be used in place of the income statement.
C) It is a numerical list of all accounts used by a company.
D) It is a tool used to prove the equality of debits and credits in the general ledger.

Question

Quizplus · Accepted Answer

A trial balance is a tool used to prove the equality of debits and credits in the general ledger. It lists all the accounts used by the company, and for each account, it shows the balance of the account and whether it is a debit or credit balance. The purpose of the trial balance is to ensure that the total debits equal the total credits, which is a fundamental principle of accounting known as double-entry bookkeeping.

Which of the Following Best Describes a Trial Balance