Chapter 7 - Trail Balances + Producing Financial statements

Question 1

What is a trial balance ?

Answer 1

A trial balance refers to a financial statement which outlines the Debits and Credits in a double entry account book

Question 2

What needs to be utilized when producing financial statements ?

Answer 2

The following Equations

Cost of sales = ( opening inventory + new inventory ) - closing inventory

Equity = Opening equity + captial injections + p/l - drawings

Assets = Equity + Liabilities

Debits and credits must equa