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Financial Accounting

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Trial balance facts

FINACT-1NP4DX

Which of the following statements regarding the trial balance are TRUE?

A

The trial balance provides a means of confirming total debits equal total credits after journal entries have been made and posted to the general ledger (or T-accounts).

B

If an error was made in an adjusting journal entry where an incorrect account was used (e.g., Equipment was credited instead of Accumulated Depreciation), total debits would not equal total credits on the adjusted trial balance.

C

The order trial balances occur within the accounting cycle is 1) unadjusted, 2) adjusted and 3) closing.

D

The adjusted trial balance reflects the impact of regular, adjusted (AJEs), and closing journal entries.

E

The unadjusted trial balance is used to prepare the financial statements.

F

The order of accounts in a trial balance is always 1) assets, 2) liabilities, 3) owners' equity, 4) revenues, 5) expenses and 6) dividends (or ALOERED).