Question

Trial balance is generally prepared

• A. Everyday
• B. Monthly
• C. Quarterly
• D. At the end of accounting period

Hint:

Trial balances are essential for checking the accuracy of accounting entries and are prepared at the end of an accounting period.

Answer 1

The Correct Option is D

Step 1: Understanding the purpose of a trial balance.
A trial balance is a financial statement used to check the accuracy of bookkeeping and accounting entries. It lists all the general ledger accounts and their balances at a specific point in time, typically at the end of an accounting period.
Step 2: Analyzing the options.
(A) Everyday: This is incorrect, as trial balances are typically not prepared daily.
(B) Monthly: While some businesses may prepare trial balances monthly, it is not the standard practice for all organizations.
(C) Quarterly: A trial balance may be prepared quarterly, but generally, it is prepared at the end of the accounting period.
(D) At the end of accounting period: Correct — A trial balance is typically prepared at the end of each accounting period to verify the accuracy of the books.
Step 3: Conclusion.
The correct answer is (D) At the end of accounting period as trial balances are generally prepared at the end of the accounting period.