Trial balance is commonly prepared?
Correct answer: B. At the end of an accounting period
- A. Frequently during the year
- B. At the end of an accounting period
- C. At the end of a month
- D. At the end of a yearAccounting & Auditing
Explanation
A trial balance is commonly prepared at the end of an accounting period to verify that ledger debit and credit balances agree before financial statements are prepared. It may also be prepared monthly or more frequently, but the broader answer is the end of the period.
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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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More Accounting Principles questions
Which of the following will affect the agreement of a trial balance?
If debit balances = credit balances, trial balance only shows or check the ____________ and it does not indicate that no errors were made during recording and posting.
Which of the following account with normal balance is shown at the debit side of a trial balance?
Debit balance = Credit balance in a trial balance indicates that:
Which of the following is true about a trial balance?
________ is the common base for preparing a trial balance?