SAP Business One Certification Practice Exam

True or False: The Trial Balance report displays only balance sheet accounts.

1. True

2. False

3. Only for closed periods

4. Only for open periods

The correct answer is: False

The Trial Balance report is a comprehensive financial statement that includes both balance sheet accounts and income statement accounts. Its primary purpose is to provide a summary of all the general ledger account balances at a specific point in time, ensuring that total debits equal total credits, which is fundamental in double-entry accounting. Balance sheet accounts, such as assets, liabilities, and equity accounts, represent the financial position of a business at a particular moment, while income statement accounts, including revenues and expenses, reflect the company's performance over a specific period. By displaying both types of accounts, the Trial Balance report aids accountants and financial professionals in checking the accuracy of financial records and preparing additional financial statements. The options suggesting that the report is limited to balance sheet accounts or is conditional based on whether the periods are open or closed do not accurately represent the purpose and scope of the Trial Balance report in financial analysis. Thus, the correct understanding is that the Trial Balance indeed includes balances from both categories of accounts, making the statement false.