Question 9
Trial BalanceA trial balance is usually prepared by an accountant from account balances in the ledger for the purpose of
- A.classifying accounts in the ledger
- B.testing arithmetical accuracies of the ledger account balances
- C.identifying the balance sheet items
- D.providing a basis for establishing the accountant's competence.
Show the answer and explanation
Answer: B (testing arithmetical accuracies of the ledger account balances)
Explanation
A trial balance lists all debit and credit balances; if the totals agree, the double entry is arithmetically correct.