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==Trial Balance==
The [[trial balance]] is a list of the active general ledger accounts with their respective [[debit]] and [[Debits and credits|credit]] balances. A [[trial balance/Trial balance limitations|balanced trial balance]] does not guarantee that there are no errors in the individual ledger entries.
==Types of accounts==
# '''[[Asset]] accounts''' represent the different types of economic resources owned or controlled by an entity. Common examples of asset accounts are cash on hand, cash in bank, real estate, inventory, prepaid expenses, [[goodwill (accounting)|goodwill]], and [[accounts receivable]].<ref>Marsden, S J, 2010. Australian Master Bookkeepers Guide. 3rd ed. Sydney Australia: CCH.</ref>
# '''[[Liability (financial accounting)|Liability]] accounts''' represent the different types of economic obligations of an entity, such as accounts payable, bank loans, bonds payable, and accrued expenses.{{Citation needed|date=April 2010}}
# '''[[ownership equity|Equity]] accounts''' represent the residual equity of an entity (the value of assets after deducting the value of all liabilities). Equity accounts include [[common stock]], paid-in capital, and retained earnings. The type and captions used for equity accounts are dependent on the type of entity. {{Citation needed|date=April 2010}}
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