Question

In the trial balance, all the accounts with debit balances are listed before the accounts with credit balances.

True
False

Answer 1

False

Step-by-step explanation:

The trial balance is prepared at the end of a counting period after all the accounts have been closed. The trial balance captures all the debits on one side and credits on the other. If the trial balance does not balance, it signifies errors in the general ledger. A balanced trial balance does not guarantee the absence of errors.

In preparing a trial balance, accountants usually follow the order of accounts as they follow each other as per the general ledger. It is not a requirement that either debits or credits come first.