________ is the common base for preparing a trial balance?
Correct answer: A. Ledger accounts
- A. Ledger accounts
- B. General Journal
- C. Specialized journals
- D. Balance sheet
Explanation
The trial balance is prepared from the closing balances of ledger accounts, which provide its debit and credit columns. Journals contain transactions but not the final account balances used directly in the trial balance.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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