The General Ledger Trial Balance is prepared yearly. True or False?

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Question restated: The General Ledger Trial Balance is prepared yearly. True or False?
Option 1: False. This would be incorrect because a General Ledger Trial Balance is not limited to a single yearly preparation. In practice, many organizations generate trial balances monthly or at specific interim periods to check that debits equal credits and to facilitate timely financial reporting. Limiting it to only yearly ignores common accounting practice and internal controls that rely on more frequent reconciliation.
Option 2: True. While it is common to prepare a trial balance at year-end as part of closing the books and generating annual financial statements, the statement as written can be interpreted as describing a typical or conventional practice: the general ledger trial balance is indeed prepared for the year to support annual reporting. The phrase aligns with standard accounting procedures where an annual trial balance is produced to verify balances before preparing the financial statements.
In summary, the key idea is that the trial balance is a checkpoint of the general ledger balances, used for accuracy checks before financial statements; however, its preparation is not exclusively yearly in all organizations, which is why the false option is flawed, while the true option reflects the common year-end application even though more frequent preparations are also possible in practice.

BBK99E2 - Basic Bookkeeping Level 2 Part 2 - Online Exam

The General Ledger Trial Balance is prepared yearly. True or False?

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