A trial balance should be prepared as needed, typically at the end of an accounting period or when discrepancies are suspected.
Questions & Step-by-step Solutions
1 item
Q
Q: How often should a trial balance be prepared?
Solution: A trial balance should be prepared as needed, typically at the end of an accounting period or when discrepancies are suspected.
Steps: 4
Step 1: Understand what a trial balance is. It is a report that lists all the balances of the accounts in the general ledger.
Step 2: Know when to prepare a trial balance. It is usually prepared at the end of an accounting period, like monthly, quarterly, or yearly.
Step 3: Recognize that a trial balance can also be prepared whenever there are discrepancies or errors suspected in the accounts.
Step 4: Remember that preparing a trial balance helps ensure that the total debits equal the total credits, which is important for accurate financial reporting.
