Which of the following statements about the trial balance is correct?
A) The debits and credits must balance.
B) The equality of credits and debits ensures that no errors were made.
C) The post-closing trial balance includes temporary accounts only.
D) The post-closing trial balance is used to prepare the financial statements.

Question

Quizplus · Accepted Answer

The trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal. A fundamental aspect of the trial balance is that the total of debit balances should equal the total of credit balances, ensuring that all entries in the accounting system are mathematically correct. However, this does not guarantee the absence of errors, as some types of errors may not affect the balance. The post-closing trial balance includes only permanent accounts, not temporary accounts. Financial statements are prepared from the adjusted trial balance, not directly from the post-closing trial balance.

Which of the Following Statements About the Trial Balance Is