Question

A trial balance a. proves that debits and credits are equal in the ledger. b. chronologically lists transactions and other events. c. proves that a company recorded all transactions. d. All of these answer choices are correct.

Answer 1

A.

Step-by-step explanation:

A trial balance check whether total debits are equal to total credits.

In case of mismatch, temporary adjustment accounts are created, ledgers are then corrected.

Is bookkeeping systematized worksheet containing the closing balance of all the accounts containing two sides. Left hand side, Debit, and right hand side, Credit.

Debit side, all the expenses, cash and assets balances.

Credit side, all the incomes, capital, reserves and the liabilities balances.

The total of this two sides should be equal. It is prepared periodically, usually while reporting financial statements.

It is prepared because it helps in detecting errors and gives a overall idea of all the ledgers accounts ensuring that every debit is having the corresponding and opposite effect.

It is the first step in the preparation of the financial statements.