Which of the following statements is true of a trial balance


Which of the following statements is true of a trial balance? O A. A trial balance is also known as the chart of accounts. O B. A trial balance is the first step in the accounting cycle. O C. A trial balance is also known as a balance sheet. O D. A trial balance is a list of all accounts with their balances. REROOR

Answer

Answer is D. A trial balance is a list of all accounts with their balances. Explanation:

Trial balance is an important and third step in accounting cycle. Firstly, all transactions are recorded in journal, secondly all journal entries are posted to ledger accounts and thirdly, the debit or credit balance of those ledger accounts are transferred to trial balance. So, trial balance is a list of all accounts with their balances. Trial balance is prepared on monthly,quarterly or yearly basis depending on the company.

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