1. Which of the following statements about the trial balance columns of a worksheet is correct?

• A. All accounts, regardless of balance, are listed in the trial balance columns.
• B. Only asset and liability accounts are listed in the trial balance columns.
• C. Only accounts with a balance are listed in the trial balance columns.
• D. Only revenue and expense accounts are listed in the trial balance columns.

Answer: (C)

Verified step by step guidance

1. Understand the purpose of a trial balance: A trial balance is a list of all accounts in the ledger with their balances at a specific point in time. It is used to ensure that total debits equal total credits, verifying the accuracy of the bookkeeping process.
2. Clarify the types of accounts included: The trial balance includes all accounts that have a balance, regardless of whether they are asset, liability, equity, revenue, or expense accounts. Accounts with a zero balance are typically excluded.
3. Eliminate incorrect options: Review the provided options and eliminate those that contradict the purpose of the trial balance. For example, 'Only asset and liability accounts are listed' is incorrect because revenue and expense accounts are also included if they have balances.
4. Focus on the correct statement: The correct statement is 'Only accounts with a balance are listed in the trial balance columns.' This aligns with the purpose of the trial balance, which is to summarize accounts with balances for verification.
5. Conclude with the importance of the trial balance: Emphasize that the trial balance is a foundational tool in accounting, helping to identify errors and prepare for financial statement creation.