The trial balance can serve as a replacement for the balance sheet, since debits must equal with credits.

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The trial balance and balance sheet serve different purposes, even though they may have some common elements. While the trial balance lists all the accounts and their balances at a specific point in time, the balance sheet summarizes the financial position of a company by presenting its assets, liabilities, and equity. Moreover, the agreement of debits and credits in the trial balance does not guarantee the absence of errors or frauds, as some mistakes may cancel each other out. Therefore, the balance sheet is a more comprehensive and reliable financial statement than the trial balance.

The Trial Balance Can Serve as a Replacement for the Balance