Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Trial Balance

Financial Accounting

2. Transaction Analysis

Trial Balance

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following shows the numerical balances determined by the chart of accounts?

Income Statement

Statement of Cash Flows

Balance Sheet

Trial Balance

Previous problemNext problem

Verified step by step guidance

Understand the concept of a Trial Balance: A Trial Balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure that the total debits equal the total credits. It is used to verify the accuracy of the accounting entries.

Recognize the purpose of the Trial Balance: It provides a snapshot of the numerical balances of accounts as determined by the chart of accounts, ensuring that the accounting system is in balance before preparing financial statements.

Differentiate between financial statements and the Trial Balance: Financial statements like the Income Statement, Statement of Cash Flows, and Balance Sheet summarize financial performance and position, while the Trial Balance is a preliminary tool used to check the accuracy of ledger balances.

Identify the relationship between the Trial Balance and the chart of accounts: The chart of accounts lists all accounts used in the accounting system, and the Trial Balance reflects the numerical balances of these accounts at a specific point in time.

Understand the role of the Trial Balance in the accounting cycle: It is prepared after journal entries and ledger postings but before the preparation of financial statements, serving as a checkpoint for accuracy.