Question

A trial balance consists of:Multiple ChoiceA two-column financial statement intended for distribution to interested parties outside the business.A two-column schedule showing the totals of all debits and of all credits made in journal entries.A two-column schedule listing names and balances of all ledger accounts.A two-column schedule of all debit and credit entries posted to ledger accounts.

Answer 1

A two-column schedule listing names and balances of all ledger accounts.

Step-by-step explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.

Generally, financial statements are the formally written records of the business and financial activities of a business entity or organization.

There are four (4) main types of financial statements and these are;

1. Balance sheet: it contains financial information about assets, liability, and equity.

2. Cash flow statement: it contains financial information about operating, financial and investing activities.

3. Income statement: it contains financial information about the income and expenses of an organization.

4. Statement of changes in equity: it contains financial information about profits or loss, dividends, etc.

A trial balance consists of a two-column schedule listing names and balances of all ledger accounts.