The primary purpose of the trial balance is to test the
A)recording of transactions.
B)analysis of transactions.
C)equality of debit and credit balances in the ledger.
D)equality of debit and credit balances in the journal.

Question

Quizplus · Accepted Answer

The primary purpose of the trial balance is to test the equality of debit and credit balances in the ledger. It ensures that total debits equal total credits before the preparation of financial statements. This is an important step in the accounting cycle to ensure accuracy and reliability of the financial information. The trial balance is not used for recording or analyzing transactions, nor is it used to test the equality of debit and credit balances in the journal.

The Primary Purpose of the Trial Balance Is to Test