Which of the following statements is true about a trial balance?

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It is a statement of the financial position of a business on a particular date.

It is a document that summarizes the cash inflows and outflows of a business for a period of time.

It is a financial statement that shows the revenues and expenses of a business for a period of
time.

It ensures that all transactions have been recorded accurately in the accounting system.

answer is A.

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Detailed Solution

A trial balance is a statement that lists all the ledger accounts and their balances to ensure that the total debits equal the total credits. If the debits and credits do not balance, it indicates that there is an error in the accounting system and that the transactions have not been recorded accurately. Therefore, option (a) is the correct answer.

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