Question

State whether the following statements are True or False.
A Trial balance is most important document.

• A. True
• B. False

Answer 1

The correct option is B False

A trial balance is a bookkeeping or accounting report that lists the balances in each of an organization's general ledger accounts. (Accounts with zero balances will likely be omitted.) The debit balance amounts are listed in a column with the heading "Debit balances" and the credit balance amounts are listed in another column with the heading "Credit balances." The total of each of these two columns should be identical. Neither the unadjusted trial balance nor the adjusted trial balance is a financial statement and neither trial balance is distributed to anyone outside of the accounting and auditing staff. In other words, the trial balance is an internal document.