A ______ is a schedule or list of balances of both debit and credit extracted from various accounts.

Profits & Loss Account

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Balance Sheet

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Cash Flow Statement

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Trial balance

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Solution

The correct option is D Trial balance
Trial balance is normally prepared at the end of the financial year to check whether all entries are posted in the ledger. It is prepared by taking the balances of both debit and credit extracted from various accounts in a list.

If trial balance agrees, it proves that books are arithmetically correct.

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Similar questions

Q. A _______ is a schedule or list of balances of both debit and credit extracted from various accounts.

Give one word, term or phrase for the following statement:

1) A List of Debit Balances and Credit balances in the ledger.
2) A Statement prepared to provide the base for preparing the final accounts.
3) A statement is prepared without balancing the ledger account.
4) Mention the side where goodwill A/c is appeared in the Trial Balance.
5) A List of both Ledger balances which is prepared after the closing of ledger Accounts.

Q. Which of the following account may have a debit or credit balance?

State true or false:

1) A Trial balance is an account.
2) A Trial balance is helpful for preparation of final accounts.
3) A Trial balance is most important document.
4) A Trial balance may be prepared on any date.
5) In Trial balance opening stock is recorded in credit balance column.
6) Both sides total of an account are taken in Gross Trial Balance.
7) Purchase account always shows debit balance.
8) A Trial balance is a List of Ledger balances.
9) A Trial balance does not ensure accounting accuracy.
10) A Trial balance shows only arithmetical accuracy.

Q. When an account that normally has debit balance shows a credit balance, or vice-versa, it indicates ______________.

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