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

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

Answer: (B)

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 ensure that the accounting equation (Assets = Liabilities + Equity) is balanced.
3. Identify what a trial balance includes: A trial balance lists all ledger account balances, including 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 company at a given point in time.