Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 18 - No. 29)
Which of the following statements is correct regarding a trial balance?
The trial balance is a list of all transactions recorded during an accounting period.
The trial balance is a statement of the company's financial performance.
The trial balance is prepared after the closing entries have been recorded.
The trial balance is used to ensure the debit and credit totals are equal.
Explanation
The trial balance is prepared to ensure that the total debits equal the total credits before financial statements are prepared.
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