Which of the following is true regarding the accounting process?
A) Preparation of the trial balance ensures that all amounts have been posted to the correct accounts.
B) Preparation of the trial balance is a step in the recording process.
C) Preparation of the trial balance determines that total debits equal total credits.
D) Preparation of the trial balance determines both that total debits equal total credits and that all amounts have been posted to the correct accounts.

Question

Quizplus · Accepted Answer

The preparation of the trial balance primarily checks that the total debits equal the total credits in the ledger accounts, ensuring that the accounting entries are mathematically correct. It does not, however, ensure that all amounts have been posted to the correct accounts or that all transactions have been recorded.

Which of the Following Is True Regarding the Accounting Process