Question

    Which one of the following statements about Trial

    Balance is correct?
    A It is a book containing different accounts of an entity. Correct Answer Incorrect Answer
    B It is a statement containing balances of debtors of an entity. Correct Answer Incorrect Answer
    C It is a statement containing balances of debtors and creditors of an entity. Correct Answer Incorrect Answer
    D It is a statement containing the various ledger balances of an entity particular date. Correct Answer Incorrect Answer

    Solution

    A trial balance is a financial statement that lists all the ledger account balances of a business at a specific point in time, usually at the end of an accounting period, such as a month or a year. The purpose of a trial balance is to ensure that the total debits of all accounts equal the total credits of all accounts, which is a fundamental principle of double-entry bookkeeping.

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