Alerts
Wishlist
Cart
Sign In
Categories
Current Affairs & GK
Current Affairs
Show All Current Affairs & GK
eBooks
General Aptitude
Arithmetic Aptitude
Data Interpretation
Show All General Aptitude
General Knowledge
Basic General Knowledge
General Science
Show All General Knowledge
Medical Science
Anatomy
Biochemical Engineering
Biochemistry
Biotechnology
Microbiology
Show All Medical Science
Technical
Database
Digital Electronics
Electronics
Networking
Show All Technical
Verbal and Reasoning
Logical Reasoning
Verbal Ability
Verbal Reasoning
Show All Verbal and Reasoning
›
What is the purpose of the trial balance in the context of final accounts?
What is the purpose of the trial balance in the context of final accounts?
Expand All
Collapse All
Practice Questions
1 question
Q1
What is the purpose of the trial balance in the context of final accounts?
To summarize all income and expenses
To ensure that debits equal credits
To calculate the net profit
To prepare the balance sheet
Show Solution
Copy
The trial balance is used to ensure that debits equal credits before preparing final accounts.
Questions & Step-by-step Solutions
1 item
Q
Q: What is the purpose of the trial balance in the context of final accounts?
Solution:
The trial balance is used to ensure that debits equal credits before preparing final accounts.
Steps: 5
Show Steps
Step 1: Understand that a trial balance is a list of all the accounts in the accounting system.
Step 2: Know that each account has a balance that can be either a debit or a credit.
Step 3: The purpose of the trial balance is to check that the total debits equal the total credits.
Step 4: If the totals match, it indicates that the accounts are in balance and there are no major errors.
Step 5: Once the trial balance is confirmed, it is used to prepare the final accounts, like the income statement and balance sheet.
Related Questions
I
If a company has a net income of $250,000 and total revenue of $1,000,000, what
Question: If a company has a net income of $250,000 and total revenue of $1,000,000, what is the pro..
A
A business incurs a loss of 15% on selling a product for $425. What was the cost
Question: A business incurs a loss of 15% on selling a product for $425. What was the cost price?Opt..
A
A firm has a current ratio of 2:1 and current liabilities of $50,000. What are t
Question: A firm has a current ratio of 2:1 and current liabilities of $50,000. What are the current..
I
If a product is sold for $240 after a discount of 20%, what was the original pri
Question: If a product is sold for $240 after a discount of 20%, what was the original price?Options..
I
If a company has total assets of $1,000,000 and total liabilities of $600,000, w
Question: If a company has total assets of $1,000,000 and total liabilities of $600,000, what is the..
‹
Biology (School & UG)
Chemistry (School & UG)
Civil Engineering
Commerce & Accountancy
Computer Science & IT
Current Affairs & GK
Data Structures & Algorithms
eBooks
Electrical & Electronics Engineering
English (School)
General Aptitude
General Knowledge
General Knowledge & Current Affairs
Languages & Literature
Law & Legal Studies
Major Competitive Exams
Mathematics (School)
Mechanical Engineering
Medical Science
Physics (School & Undergraduate)
Quantitative Aptitude & Reasoning
Social Science (School)
Technical
Verbal and Reasoning
Vocational & Skill Development
›
Soulshift Feedback
×
On a scale of 0–10, how likely are you to recommend
The Soulshift Academy
?
0
1
2
3
4
5
6
7
8
9
10
Not likely
Very likely
✕
↑
