Which one of the following statements about the Trial Balance is accurate?

Show Answers

The Trial Balance is compiled after the Profit and Loss Statement is prepared.It contains only the balances related to assets and liabilities.It includes only the balances of nominal accounts.The Trial Balance does not hold any legal or statutory significance.None of the above.

Explanation

The Trial Balance is a report listing all ledger account balances at a specific date, with debit balances on one side and credit balances on the other. It is prepared prior to drafting the Final Accounts. Although essential for internal accounting verification, the Trial Balance does not possess any statutory or legal importance.