What is the difference between a balance sheet and a trial balance?
A)A trial balance does not show profit, a balance sheet does.
B)A trial balance is used at month end and a balance sheet at year end.
C)A trial balance is used to determine profit, a balance sheet to determine net assets.
D)A trial balance is used to close accounts, a balance sheet to open accounts.
E)A trial balance is an internal document, a balance sheet is an external document.

Question

Quizplus · Accepted Answer

A trial balance is a tool used internally to check that credits and debits are equal, the balance sheet is an external document to show the financial position of the company.
Key Takeaway: The trial balance is a working document used by the accounting department. It is usually not seen anywhere else within the company. The purpose of the trial balance is to help eliminate mathematical errors and ensure that debits and credits are equal. The balance sheet is one of the four financial statements used by a business. It is a snapshot of the business's financial position, and thus is used both internally and externally by the business.

What Is the Difference Between a Balance Sheet and a Trial