3 Questions
Which of the following best describes a trial balance?
A document that lists all the accounts and their balances at a specific point in time
What is the purpose of a trial balance?
To check the accuracy of the accounting records
When is a trial balance prepared?
At the end of an accounting period
Study Notes
Trial Balance Overview
- A trial balance is a list of all general ledger accounts and their corresponding debit or credit balances.
Purpose of a Trial Balance
- The purpose of a trial balance is to ensure the debit and credit columns are equal, confirming that the accounting equation (Assets = Liabilities + Equity) is in balance.
Preparation of a Trial Balance
- A trial balance is typically prepared at the end of an accounting period, such as at the end of a month, quarter, or year, to prepare financial statements.
Test your knowledge on trial balances with this quiz! Learn about what a trial balance is, its purpose, and when it is prepared. Perfect for accounting and finance enthusiasts.
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