A trial balance is not a financial statement; it is a mechanism for checking equality of debits and credits in the ledger.

Question

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A trial balance is a list of all ledger accounts and their balances, with the purpose of ensuring that the total debits equal the total credits in the ledger. It is not a financial statement because it does not provide information about the financial performance or position of the company.

A Trial Balance Is Not a Financial Statement; It Is