TRIAL BALANCE

The trial balance is also known as the balance sheet.

The trial balance verifies the equality of debits and credits.

A trial balance is the list of only a company's debit accounts along with their account numbers.

A trial balance is a list of all of the accounts of a company with their balances.

In a trial balance, total debits must always equal to total credits.

The trial balance is an internal document used only by employees of the company.

A trial balance summarizes a ledger by listing all the accounts with their balances at a point in time.

Data from a trial balance is used to prepare the three basic financial statements.

The trial balance is one of the three basic financial statements that are issued to external stakeholders of the business.

The trial balance summarizes the balances of assets, liabilities, and equity.

Which of the following is a financial statement that presents a business's accounting equation? A) chart of accounts B) trial balance C) income statement D) balance sheet

Which of the following is used by both internal and external users to the company? A) chart of accounts B) trial balance C) balance sheet D) costing reports

Which of the following statements is true of a trial balance? A) A trial balance has the same format as a balance sheet. B) A trial balance presents data in debit and credit format. C) A trial balance shows total amounts of assets, liabilities, but not equity. D) A trial balance is prepared after the balance sheet.

A journal entry for a $75 payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash. This error will cause which of the following conditions on the trial balance? A) The sum of the credits will equal the sum of the debits. B) The sum of the debits will exceed the sum of the credits by $75. C) The sum of the debits will exceed the sum of the credits by $150. D) The sum of the credits will exceed the sum of the debits by $150.

A journal entry for a $250 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for $520 and a credit to Cash for $250. Which of the following statements correctly states the effect of the error on the trial balance? A) The sum of the credits will exceed the sum of the debits by $270. B) The sum of the debits will exceed the sum of the credits by $250. C) The sum of the debits will exceed the sum of the credits by $270. D) The sum of the debits will exceed the sum of the credits by $520.

Which of the following sequences states the order in which a trial balance lists accounts? A) Equity → Assets → Liabilities B) Liabilities → Assets → Equity C) Assets → Equity → Liabilities D) Assets → Liabilities → Equity

When is a trial balance usually prepared? A) after each entry is journalized B) before the financial statements are prepared C) after the financial statements are prepared D) at the beginning of an accounting period

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

The last step before preparing financial statements is to: A) post all entries. B) record all transactions in the journal. C) prepare the trial balance. D) review source documents.