What is true about the trial balance?

Question

Quizplus · Accepted Answer

The trial balance is a list of all the general ledger accounts (both the balance sheet and income statement accounts) and their balances at a specific point in time. The purpose of the trial balance is to ensure that the total of the debits equals the total of the credits, which signifies that the books are in balance. Therefore, option D is the correct choice. Option A is incorrect because the trial balance does not provide a detailed listing of every transaction during a period; it only shows the balances of each account. Option B is incorrect because the trial balance must include all the accounts with balances; the accountant cannot simply choose which accounts to include. Option C is also incorrect because payroll accounts, like any other accounts, must be included in the trial balance if they have a balance.

What Is True About the Trial Balance