What is the primary purpose of preparing a trial balance? a) To calculate net profit or lossb) To check the mathematical accuracy of the ledger accountsc) To prepare the income statementd) To report cash flows

What is the primary purpose of preparing a trial balance? a) To calculate net profit or lossb) To check the mathematical accuracy of the ledger accountsc) To prepare the income statementd) To report cash flows

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter3: Journalizing Transactions

Section3.3: Transactions Affecting Owner’s Equity And Asset Accounts

Problem 5AYU

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What is the primary purpose of preparing a trial balance?

a) To calculate net profit or loss
b) To check the mathematical accuracy of the ledger accounts
c) To prepare the income statement
d) To report cash flows

Definition Definition Statement that shows the ending balance of all the ledger accounts of a firm at the end of the accounting period. The trial balance is prepared after all the entries have been posted to the ledger accounts and assists in preparing the final accounts of a firm.

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