BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to adjust assets and liabilities
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to provide financial information to external users
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to prove the mathematical equality of debits and credits in the ledger
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to write up the financial statements
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Detailed explanation-1: -The main purpose of preparing a trial balance is to ensure the accuracy and integrity of a business’s financial records. It is used to verify that the total of all debits in the chart of accounts is equal to the total of all credits, which helps to ensure that the double-entry accounting system is balanced.
Detailed explanation-2: -The main purpose of a trial balance is to ensure that the list of credit and debit entries in a general ledger are mathematically correct.
Detailed explanation-3: -Trial balances are used to prepare balance sheets and other financial statements and are an important document for auditors. A trial balance is done to check that the debit and credit column totals of the general ledger accounts match each other, which helps spot any accounting errors.
Detailed explanation-4: -Purpose of a Trial Balance To check the arithmetical accuracy of the transactions and the ledger accounts. To determine the ledger account balances. It serves as evidence that the double entry system has complied duly. It facilitates the preparation of the financial statements.
Detailed explanation-5: -An initial trial balance report is called an unadjusted trial balance. After adjustments have been made to correct any errors, it’s called an adjusted trial balance and is used to prepare other financial statements.