Which statement best describes the relationship between the general ledger and the trial balance?

Which statement best describes the relationship between the general ledger and the trial balance?

• A. The trial balance is created first and then posted to the general ledger
• B. The general ledger is derived from the trial balance
• C. The trial balance is derived from the general ledger
• D. The general ledger does not include individual account balances

Answer: (C)

The balances in the general ledger are the authoritative records for every account after postings from the journal, and the trial balance is a summary that lists those same balances to verify that total debits equal total credits. Because the trial balance is created from the ledger’s ending balances, it reflects the ledger as the source of truth. The process follows journal entries, postings to the general ledger, and then the preparation of the trial balance from those ledger balances to check math and catch errors. If the trial balance doesn’t balance, it points you back to the ledger postings to locate and correct mistakes. The other views aren’t accurate: the trial balance isn’t created first and posted to the ledger, nor is the ledger derived from the trial balance, and the ledger does indeed include individual account balances.

The balances in the general ledger are the authoritative records for every account after postings from the journal, and the trial balance is a summary that lists those same balances to verify that total debits equal total credits. Because the trial balance is created from the ledger’s ending balances, it reflects the ledger as the source of truth. The process follows journal entries, postings to the general ledger, and then the preparation of the trial balance from those ledger balances to check math and catch errors. If the trial balance doesn’t balance, it points you back to the ledger postings to locate and correct mistakes. The other views aren’t accurate: the trial balance isn’t created first and posted to the ledger, nor is the ledger derived from the trial balance, and the ledger does indeed include individual account balances.