Meaning of Trial Balance - SS1 Accounting Past Questions and Answers - page 1
What is a trial balance?
A financial statement that lists all the accounts in a company's general ledger and their respective balances
A statement of cash flows
A statement of retained earnings
A statement of comprehensive income
When is a trial balance prepared?
At the beginning of an accounting period
Midway through an accounting period
At the end of an accounting period
As needed during an accounting period
What is the purpose of a trial balance?
To identify errors or discrepancies in a company's accounting records
To provide information about a company's cash flows
To provide information about a company's retained earnings
To provide information about a company's comprehensive income
Which of the following errors can cause an unbalanced trial balance?
Posting transactions to the wrong accounts
Recording transactions with incorrect amounts
Omitting transactions altogether
All of the above
What does an unbalanced trial balance indicate?
That there are no errors in the accounting records
That there is an error in the accounting records
That the accounting period has not yet ended
That the accounting equation has been followed correctly
What are some common errors that can cause a trial balance to be unbalanced?
Posting transactions to the wrong accounts, recording transactions with incorrect amounts, and omitting transactions altogether.