Asked by Jalon Williams on Apr 27, 2024
Verified
Randomly listed below are the steps for preparing a trial balance: (1) Verify that the total of the Debit column equals the total of the Credit column.(2) List the accounts from the ledger and enter their debit or credit balance in the Debit or Credit column of the trial balance.(3) List the name of the company, the title of the trial balance, and the date the trial balance is prepared.(4) Total the Debit and Credit columns of the trial balance.
What is the proper order of these steps?
A) (3) , (2) , (4) , (1)
B) (2) , (3) , (4) , (1)
C) (3) , (2) , (1) , (4)
D) (4) , (3) , (2) , (1)
Trial Balance
A spreadsheet where the totals of all ledger balances are gathered into equal totals in debit and credit columns for accounts.
Debit Column
A column in financial accounting used to record entries that decrease liabilities and increase assets or expenses.
Credit Column
A section on the right side of an accounting ledger used to record increases in liability, equity accounts, and revenue, or decreases in assets and expense accounts.
- Acquire the skills to compile and comprehend the objectives of a trial balance.
Verified Answer
KJ
Kaitlyn JonesApr 30, 2024
Final Answer :
A
Explanation :
The correct sequence for preparing a trial balance starts with listing the company name, trial balance title, and date (3), followed by listing accounts and their balances from the ledger (2), then totaling the debit and credit columns (4), and finally verifying that both totals are equal (1).
Learning Objectives
- Acquire the skills to compile and comprehend the objectives of a trial balance.