The correct command to list all local accounts in which the UID is greater than 500 is:
awk -F: '$3 > 500 {print $1}' /etc/passwd
This command uses awk to process the /etc/passwd file, which contains information about the local users on the system. The -F: option specifies that the fields are separated by colons. The $3 refers to the third field, which is the UID. The condition $3 > 500 filters out the users whose UID is greater than 500. The action {print $1} prints the first field, which is the username.