Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 27 - No. 33)
What are the limitations of the trial balance?
It might not discover all accounting errors.
It ensures all transactions are posted to the correct accounts.
It can detect transposition errors.
It verifies mathematical accuracy.
Explanation
A trial balance doesn't detect all errors such as the incorrect application of a principle, but can detect some errors, like some transposition errors.
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