Accounting · Accounting Cycle
Consider the following statements regarding the Trial Balance within the Accounting Cycle: I. It is compiled from the closing balances of ledger accounts at the end of the accounting period. II. It acts as a crucial tool to check arithmetical accuracy before the preparation of final financial statements. III. It is prepared immediately after recording transactions in subsidiary books, before any journal entries are made. IV. Nominal accounts are closed by transferring their balances directly to the trial balance. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1I, II and IV Only
- 2I, III and IV Only
- 3II and III Only
- 4I and II Only✓
Correct answer
I and II Only
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