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Commerce · Q100

Accounting

Graduate and Post Graduate · Commerce · question 100

Q100

Trial Balance is prepared to check accuracy of

A.
Ledger account balances
Answer
B.
Balance sheet balances
C.
Income statement balances
D.
Cash flow statement balances

Answer: Option A

Solution

Answer: Option A
Solution:
A Trial Balance is a statement that shows the total of debit and credit balances of accounts. The total of debit amounts shall be equal to the credit amounts for the trial balance to tally. Hence, it verifies the arithmetical accuracy of the postings in the ledger accounts.