Multiple choice

Which of the following lists the balance and the title of accounts in the ledger on a given date?

  1. P & L account

  2. Balance sheet

  3. Earning statement

  4. Trial balance
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A trial balance is a statement that lists all ledger account balances (both debit and credit) on a particular date. Its primary purpose is to verify the arithmetic accuracy of posting - that total debits equal total credits. The P&L account and balance sheet are financial statements, not lists of ledger balances. An earning statement is another term for P&L.

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