Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 17 - No. 33)
Which of the following best describes the purpose of a trial balance?
To prove the mathematical accuracy of the accounting equation
To determine the company's profit or loss
To list all the company's assets and liabilities
To prepare the financial statements
Explanation
A trial balance is used to check that the total debits equal the total credits, verifying the mathematical accuracy of the accounting equation.
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