Question

Select the most appropriate alternatives from those given below

A list of balances of all the accounts in ledger is called __________.
a) Balance Sheet
b) Profit & Loss A/c
c) Trading A/c
d) Trial Balance

Answer 1

A list of balances in all accounts in ledger is called Trial Balance.

Explanation:
A Trial Balance is the summary of all debit and credit balances taken from ledger. It includes the list of all the accounts with debit and credit balances. It is prepared to check the arithmetical accuracy of the book of accounts.
A Balance Sheet is a statement that is prepared from the balances of personal and real accounts. It includes all the assets and liabilities of a business enterprise.
The Profit & Loss Account records all the indirect incomes and expenses of a business, whereas the Trading A/c records all the direct incomes and expenses of the business. The balances of all the nominal accounts are transferred to the Trading and Profit and Loss Account.