Multiple Choice
A trial balance prepared before any adjustments have been recorded is called:
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2. Transaction Analysis
Trial Balance
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which general ledger accounts are listed in the trial balance columns of a worksheet?
A
Only asset and liability accounts
B
Only accounts with debit balances
C
All accounts with balances, regardless of whether they have debit or credit balances
D
Only revenue and expense accounts
Verified step by step guidance1
Understand the purpose of a trial balance: A trial balance is a summary of all general ledger accounts and their balances at a specific point in time. It is used to ensure that total debits equal total credits, which is a fundamental principle of double-entry accounting.
Identify the types of accounts in the general ledger: The general ledger includes all accounts used in the accounting system, such as assets, liabilities, equity, revenues, and expenses.
Clarify the inclusion criteria for the trial balance: The trial balance includes all accounts with balances, regardless of whether they have debit or credit balances. This ensures that the trial balance reflects the complete financial position of the entity.
Distinguish between debit and credit balances: Accounts with debit balances (e.g., assets and expenses) and accounts with credit balances (e.g., liabilities, equity, and revenues) are both included in the trial balance. The trial balance does not exclude accounts based on the type of balance.
Reinforce the correct answer: The trial balance columns of a worksheet list all accounts with balances, regardless of whether they have debit or credit balances. This comprehensive approach ensures the accuracy and completeness of the financial records.
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