2.4 Use a trial balance to prepare financial statements
1) A trial balance is a list of the accounts and their balances taken from the general journal.
2) A trial balance contains the name of the company, the words "trial balance," and the date of the statement.
3) The required accounting period for a trial balance is one year.
4) Once the trial balance is correct, the next step is to prepare the financial statements, beginning with the income statement.
5) If debits equal credits on the trial balance, it means that the trial balance is correct.
6) An entry could have been posted twice and the trial balance might still balance.
7) A trial balance will determine if:
A) an entry was recorded twice.
B) an entry was posted twice.
C) debits equal credits.
D) the right accounts were debited or credited.
E) all entries are correct.
8) The trial balance:
A) lists only the accounts which are used to prepare the balance sheet.
B) shows only credit balances.
C) shows only debit balances.
D) shows the current date.
E) lists only the accounts which are used to prepare the income statement.
9) The columns on a trial balance represent __________.
10) A cash payment was made to pay for delivery expenses, but was mistakenly charged to advertising expenses. What effect will this have on the balance of the trial balance?