A trial balance is prepared to facilitate the **preparation** of the **financial statements** and to ensure the arithmetic **accuracy** in recording.

The trial balance serves two main purposes:

1. **Preparation of Financial Statements**: By listing all account balances, a trial balance helps in the compilation of financial statements such as the income statement and balance sheet.

2. **Ensuring Accuracy**: It acts as a tool to verify that the total debits equal total credits, ensuring that the accounts are correctly recorded and balanced. If the trial balance does not balance, this indicates that there may be errors in the accounting entries that need to be investigated and corrected.

Overall, a trial balance is a crucial step in the accounting process, serving as a checkpoint before finalizing the financial statements.

Question

A trial balance is prepared to facilitate the **preparation** of the **financial statements** and to ensure the arithmetic **accuracy** in recording.

The trial balance serves two main purposes:

1. **Preparation of Financial Statements**: By listing all account balances, a trial balance helps in the compilation of financial statements such as the income statement and balance sheet.

2. **Ensuring Accuracy**: It acts as a tool to verify that the total debits equal total credits, ensuring that the accounts are correctly recorded and balanced. If the trial balance does not balance, this indicates that there may be errors in the accounting entries that need to be investigated and corrected.

Overall, a trial balance is a crucial step in the accounting process, serving as a checkpoint before finalizing the financial statements.

Knowee AI · Accepted Answer

A trial balance is prepared to facilitate the **preparation** of the **financial statements** and to ensure the arithmetic **accuracy** in recording.

The trial balance serves two main purposes:

1. **Preparation of Financial Statements**: By listing all account balances, a trial balance helps in the compilation of financial statements such as the income statement and balance sheet.

2. **Ensuring Accuracy**: It acts as a tool to verify that the total debits equal total credits, ensuring that the accounts are correctly recorded and balanced. If the trial balance does not balance, this indicates that there may be errors in the accounting entries that need to be investigated and corrected.

Overall, a trial balance is a crucial step in the accounting process, serving as a checkpoint before finalizing the financial statements.

A trial balance is prepared to facilitate the of the statements and to ensure the arithmetic in recording.

Question

A trial balance is prepared to facilitate the of the statements and to ensure the arithmetic in recording.

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