Future Business Leaders of America (FBLA) Accounting Practice Test

Which accounting form is used to summarize the general ledger information needed to prepare financial statements?

1. General Ledger

2. Journal Entry

3. Work Sheet

4. Trial Balance

The correct answer is: Work Sheet

The correct choice is the work sheet because it serves as a tool to organize and summarize information from the general ledger, making it easier to prepare financial statements. A work sheet typically includes columns for the trial balance, adjustments, and adjusted trial balance, which allows accountants to clearly view the necessary information and make any adjustments before finalizing the financial statements. This systematic approach helps ensure accuracy and completeness in financial reporting. The general ledger contains all the detailed accounts and is not a summary itself; its purpose is to record transactions rather than compile them for reporting. Journal entries record individual transactions and are foundational for ledger accounts but do not provide a summary of the entire ledger. A trial balance does summarize the general ledger balances, but its purpose is primarily to verify that debits equal credits and to provide a preliminary check before adjustments. The work sheet integrates these steps, summarizing the ledger information into a cohesive format to aid in the preparation of the financial statements.