A trial balance cannot be distributed to stockholders in lieu of a balance sheet.

Name: A trial balance cannot be distributed to stockholders in lieu of a balance sheet.
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Question

Quizplus · Accepted Answer

A trial balance only lists the balance of each account in a company's ledger, and is not a comprehensive financial statement like a balance sheet. Therefore, it cannot be used as a substitute for a balance sheet when providing financial information to stockholders.

A Trial Balance Cannot Be Distributed to Stockholders in Lieu