The purpose of a trial balance is to:
A)prepare a mock up of a real balance sheet.
B)review the income statement accounts.
C)meet a reporting requirement of the Securities Exchange Commission (SEC).
D)show whether the figures in the account ledgers are correct and balanced.

Question

Quizplus · Accepted Answer

The purpose of a trial balance is to show whether the figures in the account ledgers are correct and balanced. It is used to ensure that debit entries equal credit entries and to identify any errors in the ledger accounts. It is not directly related to preparing a balance sheet or income statement, and it is not a reporting requirement of the SEC.

The Purpose of a Trial Balance Is To