Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 13 - No. 28)

Why do businesses prepare a trial balance?
To determine the company's profit or loss.
To prepare the cash flow statement.
To ensure the accounting equation (Assets = Liabilities + Equity) is balanced.
To calculate the company's tax liability.

Explanation

A trial balance ensures that the accounting equation is balanced.

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