Chapter 6

Question 1

What is an initial trail balance

Answer 1

A list of all credit and debit balances brought down in the ledger accounts

Question 2

What is the purpose of a trail balance

Answer 2

It forms checks on the accuracy of the entries in the ledger accounts

Question 3

What accounts are relevant to the preparation in the trail balance

Answer 3

Only the ledger accounts in the general ledger