True or false about the trial balance

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   A trial balance lists the ledger account balances.

2. Statement is true

   No

   Statement

   Assets normally show a credit balance.

3. Statement is true

   Yes

   Statement

   Liabilities normally show a credit balance.

4. Statement is true

   Yes

   Statement

   The debit and credit totals should agree.

5. Statement is true

   No

   Statement

   A trial balance is drawn from the cash book only.

Instructions

Decide whether each statement is true or false.

Explanation