Which of the following is an internal report that will determine if debit balances equal credit balances in the ledger?
A) chart of accounts
B) income statement
C) trial balance
D) account reconciliation

Question

Quizplus · Accepted Answer

A trial balance is a report that lists all ledger accounts and their balances to ensure that the total of all debit balances equals the total of all credit balances. This is an internal report used by accountants to ensure the accuracy of financial records before preparing financial statements. Choice A, chart of accounts, is a listing of all the accounts used in the accounting system, but it does not determine if debits equal credits. Choice B, income statement, reports a company's revenues and expenses over a specified period and does not include all the accounts in the ledger. Choice D, account reconciliation, is a process of comparing two sets of records (such as bank statements and company records) to ensure they are in agreement, but it is not used to determine if debits equal credits in the ledger.

Which of the Following Is an Internal Report That Will