Question

Which of the following correctly describes a list of accounts and their balances, showing that debits equal credits?

a.Journal.
b.Trial balance.
c.General ledger.
d.Chart of accounts.

Answer 1

The correct answer is Trial balance. A trial balance is a list of all accounts and their balances, which is used to ensure that the total debits equal the total credits.

Step-by-step explanation:

The correct answer is b. Trial balance. A trial balance is a list of all accounts and their balances, which is used to ensure that the total debits equal the total credits. It is prepared after all the transactions have been recorded in the journal and posted to the general ledger.

By comparing the debits and credits in the trial balance, accountants can check for errors in recording and posting transactions.