Which item is generally excluded from a trial balance prepared from ledger balances?
Correct answer: B. A transaction recorded in the journal but not posted
- A. A debit balance of an asset
- B. A transaction recorded in the journal but not posted
- C. A debit balance of an expense
- D. A credit balance of a liability
Explanation
A trial balance contains balances extracted from ledger accounts, not unposted journal transactions. An unposted transaction therefore cannot appear in the trial balance.
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About Ledger Accounts and the Trial Balance
Ledger accounts collect transactions under individual headings and use debit and credit sides to determine balances. The trial balance lists those balances to check arithmetical agreement before financial statements are prepared, but it does not reveal every error, such as complete omission, compensating errors or entries made in the wrong account.
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34 free Ledger Accounts and the Trial Balance MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
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