A Trial Balance Is A(an)

question 61

Multiple Choice

A trial balance is a(an)

• A) optional financial statement used only by accountants.
• B) financial statement which can be used in place of a balance sheet.
• C) list of accounts and their balances taken from the chart of accounts.
• D) document used to prove the equality of debits and credits in the general ledger.

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Definitions:

GAAP

The standardized guidelines for accounting and financial reporting, providing transparency and consistency across financial statements and industries.

FASB

Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, typically recorded as an asset on the balance sheet.

Accounts Payable

An obligation to a lender recorded on an open account, typically relating to the acquisition of goods and services.