A trial balance represents the:

• A. Record of all journal entries made during the period
• B. List of all ledger account balances at a specific date
• C. Summary of all cash transactions during the year
• D. Statement of financial position for the company

Answer: (B)

Verified step by step guidance

1. Understand the concept of a trial balance: A trial balance is a report that lists all the balances of ledger accounts at a specific point in time. It is used to verify that the total debits equal the total credits in the accounting system.
2. Eliminate incorrect options: Review each option provided in the problem and determine whether it aligns with the definition of a trial balance.
3. Option 1: 'Record of all journal entries made during the period' - This is incorrect because journal entries are recorded in the journal, not in the trial balance.
4. Option 3: 'Summary of all cash transactions during the year' - This is incorrect because cash transactions are summarized in the cash flow statement, not the trial balance.
5. Option 4: 'Statement of financial position for the company' - This is incorrect because the statement of financial position is another term for the balance sheet, which is different from the trial balance. The correct answer is Option 2: 'List of all ledger account balances at a specific date.'