The trial balance
A) Proves that debits are greater than credits when the company has net income.
B) Uncovers any errors in journalizing and posting prior to preparation of the statement of financial position.
C) Is useful in preparing the statement of financial position.
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

The trial balance is primarily used to ensure that the total debits equal the total credits after journalizing and posting transactions, which is crucial for the accurate preparation of financial statements, including the statement of financial position. It does not prove that debits are greater than credits when the company has net income, nor does it uncover all errors in journalizing and posting.

The Trial Balance