Which of the following is a report for internal use only?
A)Balance sheet
B)Statement of financial position
C)Trial balance
D)Classified balance sheet

Question

Quizplus · Accepted Answer

A trial balance is an internal report only.A trial balance checks on the equality of debits and credits.It is not a way to ensure that all journal entries have been posted since if a journal entry is not posted,debits could still equal credits.It is also not a way to ensure that no mistakes have been made.If a mistake was made,but was posted using equal debits and credits,the trial balance would still be in balance.A balance sheet (or classified balance sheet if subcategories are used)is also called a statement of financial position and is used by investors and creditors.

Which of the Following Is a Report for Internal Use