In the preparation of a trial balance, all accounts are listed in the order in which they appear on the chart of accounts, including those accounts with a zero balance.

An error discovered before posting is usually corrected with a journal entry.

To locate a trial balance error, the first step is to check the postings from the journal to the individual ledger accounts.

When posting a correcting entry, the phrase correcting entry is usually written in the Explanation column of the ledger account.

If a transaction is journalized on the 8th and is posted on the 10th, the date entered in the Date column of the ledger account is the 10th.

A trial balance is prepared after posting is completed.

A work sheet is prepared at the end of each fiscal period.

The work sheet is a working paper and is prepared in pen.

Account titles are listed on the work sheet in alphabetical order

A net income for the period is the amount left after the expenses for the period have been subtracted from revenue.

All asset accounts are extended to the Balance Sheet section.

Preparing the work sheet is the sixth step in the accounting cycle.

Amounts from the Trial Balance section are extended first to the Income Statement section.

A single rule across both amount columns of the Trial Balance section means that no more entries will be made.

A net loss decreases the balance in the owner's capital account.

After the net loss is calculated, it should be reflected in the debit column of the Income Statement section and the credit column of the Balance Sheet section.

Total expenses for the period are reflected in the total of the credit column of the Income Statement section.

The Trial Balance section contains entries for all accounts in the general ledger including those with zero balances.

A work sheet always covers a period of one month.

All liability accounts are listed in the credit column of the Income Statement section.

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