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Item $15$

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A trial balance is a list of accounts from the ledger showing their debit or credit balances in separate columns. The trial balance is a summary of the ledger$$s contents and is useful in preparing financial statements and in revealing recordkeeping errors.

The balance sheet, the statement of retained earnings, the income statement, and the statement of cash flows use data from the trial balance $($and other financial statements$)$ for their preparation.

Knowledge Check $01$

Which of the following statements is true?

multiple choice

The trial balance is completed to ensure that debits and credits are equal in the General Ledger.

The trial balance is completed after the balance sheet.

The trial balance calculates net income for the period.

The trial balance is a financial statement distributed to owners and investors.