A business’s trial balance ……. ?
Select ONE answer:
- shows its financial position
- establishes whether its accounting records are correct
- list all of the entries in its double-entry accounting records
- is a list of all of the balances brought down in its double-entry accounting records
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple choice question is suitable for Accounting KS5 classes.
The answer is 4 – 1 is the balance sheet; 2 even if the trial balance balances does not mean that it is free of accounting errors such as omission, compensating errors etc; 3 these are shown in the ledger accounts whereas the balances are in the TB.
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