A trial balance can best be explained as a list of:

• A. all transactions recorded during the period
• B. all journal entries made during the period
• C. all ledger account balances at a specific date
• D. all assets and liabilities of the business

Answer: (C)

Verified step by step guidance

1. Understand the concept of a trial balance: A trial balance is a bookkeeping worksheet in which the balances of all ledger accounts are compiled into debit and credit columns to ensure that the total debits equal the total credits at a specific date.
2. Clarify the purpose of a trial balance: It is used to check the mathematical accuracy of the ledger accounts and serves as a preliminary step before preparing financial statements.
3. Identify the components of a trial balance: It includes all ledger account balances, such as assets, liabilities, equity, revenues, and expenses, as of a specific date.
4. Differentiate a trial balance from other accounting records: Unlike a list of transactions or journal entries, a trial balance focuses on the ending balances of ledger accounts rather than the detailed activity during the period.
5. Conclude that the correct explanation of a trial balance is 'all ledger account balances at a specific date,' as it summarizes the financial position of the accounts at a given point in time.