Q14RQ - Horngren'S Financial And Managerial Accounting

Question

What is the purpose of the trial balance?

Step-by-Step Solution

Answer

Trial balance is an accounting worksheet, and the primary purpose is to examine the accuracy of the accounts.

Step 1: Definition of trial balance

The trial balance is defined as the accounting worksheet that records the ledger account's debits and credits in one place.

Step 2: Purpose of Trial Balance

The primary purpose of the trial balance is to check the accuracy by showing that the debit and credit sides of the trial balance are equal as it reports the summary of accounts and their balances.