Heather works in the accounting department of Colorado Manufacturing. Today she will use the firm's ledger to summarize information that was posted over the most recent time period. Her goal is to determine if the accounts are balanced as required by the double-entry method of bookkeeping. To be sure they are correct, Heather will prepare a(n):
A) account analysis.
B) statement of cash flows.
C) balance sheet.
D) trial balance.

Question

Quizplus · Accepted Answer

A trial balance is used to verify that the debits and credits in the accounts match and are recorded correctly. It lists all the account balances in separate columns and ensures that the total debits and credits equal each other. This helps to identify any errors or omissions in the accounting records. A statement of cash flows shows the inflow and outflow of cash during a specific period, a balance sheet is a snapshot of a company's assets, liabilities, and equity at a specific point in time, and an account analysis involves a detailed examination of a specific account to identify trends and patterns.

Heather Works in the Accounting Department of Colorado Manufacturing