Fill in the blank: A trial balance is prepared after ___ and ___ entries are posted to the ledger.

Journalizing and posting

Why might a trial balance be mathematically correct yet still contain errors?

Trial balance can have errors.

• Incorrect amounts entered.

• Transactions may be missing.

• Entries posted incorrectly.

True or False: A trial balance can only be prepared at the end of a financial period.

False. A trial balance can be prepared at any time, although it is advisable to do so at the end of the reporting period.

What are the two methods of preparing a trial balance?

The two methods of preparing a trial balance are the Total Method and the Balance Method.

Fill in the blank: In the trial balance, the balances of asset accounts and expense accounts are recorded in the ___ column.

Debit

What is the significance of the Double Entry System in relation to the trial balance?

Double Entry System is crucial.

• Balances debits and credits.

• Ensures accuracy in records.

• Foundation for financial statements.

What types of accounts are recorded in the credit column of the trial balance?

Liability accounts, income accounts, gains, and capital are recorded in the credit column of the trial balance.

In preparing a trial balance, which type of error can occur if an entry is posted more than once?

This can lead to the trial balance being balanced erroneously, masking underlying inaccuracies in the accounts.

Fill in the blank: The total of the debit balances in a trial balance will equal the total of the ___ balances.

Credit