What is the primary purpose of preparing a trial balance?

Show Answers

To verify the correctness of ledger account balancesTo validate the figures in the balance sheetTo confirm the accuracy of income statement totalsTo check the amounts reported in the cash flow statementNone of the above

Explanation

The trial balance is prepared to ensure that the total debits equal total credits in the ledger accounts, confirming the accuracy of ledger balances before financial statements are created. It does not directly verify balances in the balance sheet, income statement, or cash flow statement.