This summarizes all the account balances for the financial statements and shows whether total debits equals total credits:

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The trial balance summarizes all the account balances and checks whether total debits equal total credits. This is a necessary step in the accounting process to ensure accurate financial statements. A journal is where transactions are initially recorded, a ledger is a record of all account transactions, and the accounting equation is a formula used to determine the relationship between assets, liabilities, and equity in a company.

This Summarizes All the Account Balances for the Financial Statements