When preparing the trial balance, the total debits MUST equal the total credits.

Question

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The trial balance is prepared to ensure that the total of debit balances equals the total of credit balances. This is because of the accounting equation, which states that assets must always equal liabilities plus owner's equity. By ensuring that debits equal credits in the trial balance, accountants can confirm that the accounting equation is being followed correctly.

When Preparing the Trial Balance, the Total Debits MUST Equal