Which of the following statements is true?
A)If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions.
B)The trial balance is a book of original entry.
C)Another name for the trial balance is the chart of accounts.
D)The trial balance is a list of all accounts from the ledger with their balances at a point in time.
E)The trial balance is another name for the balance sheet as long as debits balance with credits.

Question

Quizplus · Accepted Answer

The trial balance is a list of all accounts from the ledger with their balances at a point in time. It is used to check whether the total of debit balances equals the total of credit balances and to identify any errors in recording or posting transactions. It does not prove that no errors have been made, but it helps in detecting them. The trial balance is not a book of original entry, nor is it the chart of accounts. It is also not another name for the balance sheet, which is a statement of financial position that shows assets, liabilities, and equity at a specific date.

Which of the Following Statements Is True