[amp_mcq option1=”Trial balance” option2=”Balance sheet” option3=”Profit and loss A\/c” option4=”Trading A\/c” correct=”option1″]<\/p>\n
The correct answer is: A. Trial balance<\/strong><\/p>\n A trial balance is a list of all the accounts in a company’s ledger, with their balances as of a particular date. It is prepared to prove that the total debits equal the total credits in the ledger.<\/p>\n A trial balance only includes personal and real accounts, not nominal accounts. Personal accounts are accounts that record the transactions of individuals or businesses with each other. Real accounts are accounts that record the assets, liabilities, and equity of a business. Nominal accounts are accounts that record the revenues, expenses, and gains and losses of a business.<\/p>\n A balance sheet is a statement of a company’s assets, liabilities, and equity at a particular date. It is prepared to show the financial position of a company at a particular point in time.<\/p>\n A profit and loss account is a statement of a company’s revenues, expenses, and net profit or loss for a particular period of time. It is prepared to show the financial performance of a company over a period of time.<\/p>\n A trading account is a statement of a company’s revenue and expenses from trading activities for a particular period of time. It is prepared to show the profitability of a company’s trading activities.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Trial balance” option2=”Balance sheet” option3=”Profit and loss A\/c” option4=”Trading A\/c” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-59237","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n