5 Questions
Which of the following best describes a trial balance?
A list of all the general ledger accounts in a business
What is the purpose of a trial balance?
To prove the accuracy of the ledger accounts
Where are the debit balance values listed in a trial balance?
In the debit column
Where are the credit balance values listed in a trial balance?
In the credit column
Who first described the process of a trial balance?
Luca Pacioli
Study Notes
Trial Balance Overview
- A trial balance is a list of all general ledger accounts and their corresponding debit or credit balances at a specific point in time.
Purpose of a Trial Balance
- The purpose of a trial balance is to verify that the debit and credit balances of all general ledger accounts are equal, thus ensuring the mathematical accuracy of the accounting equation.
Debit and Credit Balances in a Trial Balance
- Debit balance values are listed in the left column of a trial balance.
- Credit balance values are listed in the right column of a trial balance.
Origin of the Trial Balance Process
- Luca Pacioli, an Italian monk, first described the process of a trial balance in the 15th century.
Test your knowledge of trial balances with this quiz! Learn about the purpose of a trial balance, how it is prepared, and the significance of debit and credit balances. Perfect for accounting and finance enthusiasts.
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