The trial balance summarizes all the account balances for the financial statements and shows whether total debits equal total credits.

Question

Quizplus · Accepted Answer

The trial balance is a list of all accounts and their balances. It is used to ensure that the total debits equal the total credits, helping to identify errors in the accounting records. Therefore, the statement that the trial balance summarizes all account balances and shows whether total debits equal total credits is true.

The Trial Balance Summarizes All the Account Balances for the Financial