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A Trial Balance Summarizes the Ledger by Listing All the Accounts

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A trial balance summarizes the ledger by listing all the accounts with their balances at a point in time.


Definitions:

Reasonable Person Test

A legal standard used to determine what a typical, prudent person would have done in similar circumstances, applied in various legal contexts.

Surety Bond

Insurance arranged in case a party to a contract fails to perform.

Contract Performance

The carrying out of the duties and obligations as stipulated in a contract by the involved parties.

Subrogation Right

The right for an insurer to pursue a third party that caused an insurance loss to the insured, in order to recover the amount of the claim paid.

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