Question

A trial balance is prepared to ________.

• A. ascertain arithmetic accuracy of accounts
• B. facilitate preparation of financial statements
• C. facilitate audit function
• D. all the three

Answer 1

The correct option is D all the three

A trial balance is a statement showing the balances, or total of debits and credits, of all the accounts in the ledger with a view to verify the arithmetical accuracy of posting into the ledger accounts. Trial balance is an important statement in the accounting process, which shows final position of all accounts and helps in preparing the final statements. The task of preparing the statements is simplified because the accountant can take the account balances from the trial balance instead of looking them up in the ledger.