A Trial Balance Is the Listing of Each Active Account

question 3

True/False

A trial balance is the listing of each active account and its corresponding debit or credit balance at a particular point in time.

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Definitions:

Prepaid Account

An account reflecting payments made in advance for goods or services, which are recognized as expenses when the goods or services are actually consumed.

Accounts Payable

Short-term liabilities representing amounts owed to suppliers or creditors for goods and services received but not yet paid for.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the accuracy of the entries.

Journal Entry

A record in accounting that represents a transaction, documenting the debit and credits affected by it.