Accounting for IGCSE & O level - Final Statements (Section 6 - No. 6)
What is the role of the trial balance in preparing the income statement?
It is used to calculate the cost of goods sold.
It provides the ending inventory figures for COGS calculations.
It lists all the ledger account balances that are used to prepare the income statement.
It is used to calculate the gross profit.
Paskaidrojums
The trial balance ensures the equality of debits and credits and provides the account balances for preparing the financial statements, including the income statement.