How is a Trial Balance used? Select an answer: It is an external document used to...

How is a Trial Balance used?

Select an answer:

It is an external document used to verify that the entries listed in the income statement have been properly tabulated.
It is a document provided to investors to indicate that accounts have been properly calculated.
It is an internal document that lists the balances across all of the company's accounting system.
It is a summary document of a company's financial transactions over a year.

Expert Solution

In double entry system of book keeping we have something known as a trial balance.

A trial balance is basically the summation of all the Debits and Credits of accounting heads, and since the debits would equial the credits , it balances out.

This is a basic tool of double entry book keeping, as the P&L and the Balance sheet for a period are derived from the trial balance. So step one would be to draw up the trial balance of all accounting heads, and step two would be the Financial statements preparation using the information in the trial balance.

It is a summary document of a company's financial transactions over a year.

jeff jeffy answered 2 years ago

Use the following Adjusted Trial Balance, make a classified balance sheet. Carters Used Cars ADJUSTED TRIAL...

Use the following Adjusted Trial Balance, make a classified balance sheet. Carters Used Cars ADJUSTED TRIAL BALANCE April 31, 2016 Account Debit Credit Cash $ 20,000 $ Accounts Receivables 50,000 Allowance for Bad Debts 2,000 Inventory 30,000 Supplies 1,000 Building 250,000 Accumulated Depr.-Building 80,000 Equipment 70,000 Accumulated Depr.- Equipment 60,000 Patents 70,000 Accounts Payable 30,000 Notes Payable (due in 6 months) 5,000 Mortgage Payable (10 years, next yr...

what type of document is the budget? Internal or external?

How would you explain the purpose of the adjusted trial balance? When is the trial balance...

How would you explain the purpose of the adjusted trial balance? When is the trial balance prepared?

Which of the following is true regarding the trial balance? Select all that apply. a) The...

Which of the following is true regarding the trial balance? Select all that apply. a) The trial balance includes all of the accounts needed to create the balance sheet and the income statement. b) The trial balance is much less detailed than the balance sheet and income statement. c) The accounting principle of materiality says that the information on the trial balance can be combined and simplified into more general reporting items. d) The accounting principle of money measurement says...

A trial balance is not a formal financial statement but is rather one that is used...

A trial balance is not a formal financial statement but is rather one that is used by accountants prior to creating the formal statements to ensure that its debits equal credits. We have learned about two trial balance-the unadjusted trial balance and the adjusted trial balance. Please explain the differences between the two and why we need both.

Identify the sources of external data. How is external data used? What is its advantage in...

Identify the sources of external data. How is external data used? What is its advantage in the consideration of losses?

Please prepare a full trial balance – Trial Balance, Adjustments,Adjusted Trial Balance, Income Statement, Balance...

Please prepare a full trial balance – Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, Balance Sheet, and Statement of Owner’s Equity, as well the individual Balance Sheet, Income Statement, and Statement of Owners Equity. Include any journal entries necessary for this assignment. Use T accounts if you find them helpful. Attached are the files for your use. Check your formulas. 1. You are reporting for your client for the One Month period September 30, 2020 2. The started the...

Use the adjusted trial balance for Stockton Company to answer the question that follow.

Use the adjusted trial balance for Stockton Company to answer the question that follow. Stockton Company Adjusted Trial Balance December 31 Account No. Debit Balances Credit Balances Cash 11 6,530 Accounts Receivable 12 2,100 Prepaid Expenses 13 700 Equipment 18 13,700 Accumulated Depreciation 19 1,100 Accounts Payable 21 1,900 Notes Payable 22 4,300 Bob Steely, Capital 31 12,940 Bob Steely, Drawing 32 790 Fees Earned 41 9,250 Wages Expense 51 2,500 Rent Expense 52 1,960 Utilities Expense 53 775 Depreciation...

Directions: Answer the following questions on a separate document. Explain how you reached the answer or...

Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above. A. Bad Boys, Inc. is evaluating its cost of capital. Under consultation, Bad Boys, Inc. expects to issue new debt at par with a coupon rate of 8% and to issue new preferred stock with a $2.50 per share dividend at $25 a share. The...

Directions: Answer the following questions on a separate document. Explain how you reached the answer, or...

Directions: Answer the following questions on a separate document. Explain how you reached the answer, or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above. A. In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges. B. Using the two stocks you identified, determine the free...

Question