trial balance Flashcards
1
Q
what is a trial balance
A
a list of all ledger accounts and their ending balances at a point in time
2
Q
purposes of trial balance
A
- to ensure arithmetic accuracy in recording
- to facilitate the preparation of the financial statements
3
Q
what is a limitation of a trial balance
A
a balanced trial balance is not an absolute proof of accuracy. there may be errors not revealed by a trial balance.
