Which of the following is known as the base for preparing trial balance?
Correct answer: C. Ledger account
- A. Journal
- B. Cash account
- C. Ledger account
- D. Balance sheet
Explanation
The ledger collects the debit and credit balances of all individual accounts, and these balances are used to prepare the trial balance. A journal records transactions but does not provide the final account balances directly.
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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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