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    Question

    Find the incorrect statement:

    A The equality of debit and credit of the Trial balance does not mean that the individual accounts are also accurate. Correct Answer Incorrect Answer
    B Journal lists the balance and the title of account in ledger. Correct Answer Incorrect Answer
    C Cash account is Real account Correct Answer Incorrect Answer
    D Goodwill account is an ‘intangible asset’ Correct Answer Incorrect Answer

    Solution

    Trial Balance lists the balance and the title of account in ledger.   A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns. A company prepares a trial balance periodically, usually at the end of every reporting period. The general purpose of producing a trial balance is to ensure the entries in a company's bookkeeping system are mathematically correct.

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