ACCA Applied Knowledge · Financial Accounting · Trial balance
Which of the following is a correct description of the format of a trial balance?
A trial balance is a list of ledger account balances placed in two columns, one for debit balances and one for credit balances, with each column totalled. It is not a statement of financial position, journal or income statement.
- AA list of ledger account balances showing debit balances in one column and credit balances in anotherCorrect
- BA statement showing assets in one column and liabilities and equity in another
- CA list of all transactions in date order with their debit and credit entries
- DA summary of revenue and expenses leading to profit for the period
Explanation
A trial balance lists each ledger account balance in a debit column or a credit column and totals both. Option B describes the statement of financial position, C is the journal or day book and D is the statement of profit or loss.
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