In the preparation of a trial balance, which of the following is true?
Practice Questions
1 question
Q1
In the preparation of a trial balance, which of the following is true?
Only asset accounts are included
All accounts with balances are included
Only revenue and expense accounts are included
Liabilities are excluded
In the preparation of a trial balance, all accounts with balances, including assets, liabilities, equity, revenues, and expenses, are included.
Questions & Step-by-step Solutions
1 item
Q
Q: In the preparation of a trial balance, which of the following is true?
Solution: In the preparation of a trial balance, all accounts with balances, including assets, liabilities, equity, revenues, and expenses, are included.
Steps: 5
Step 1: Understand what a trial balance is. It is a list of all accounts in the accounting system with their balances.
Step 2: Identify the types of accounts that are included in the trial balance. These include assets, liabilities, equity, revenues, and expenses.
Step 3: Gather all account balances from the accounting records.
Step 4: List each account and its balance in the trial balance.
Step 5: Ensure that the total debits equal the total credits in the trial balance.
