Which of the following statements is TRUE of a trial balance?
A) A trial balance is the first step in the accounting cycle.
B) A trial balance is also known as a balance sheet.
C) A trial balance is a list of all accounts with their balances.
D) A trial balance is also known as the chart of accounts.

Question

Quizplus · Accepted Answer

A trial balance is a list of all accounts with their balances. It is not the first step in the accounting cycle (which is identifying transactions), it is not the same as a balance sheet (which shows the financial position of a company at a particular point in time), and it is not the same as the chart of accounts (which is a list of accounts used by a company).

Which of the Following Statements Is TRUE of a Trial