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 for the financial statements and shows whether total debits equals total credits. The ledger is a record-keeping system for all the transactions of a business. The journal is a chronological record of all transactions. The accounting equation is Assets = Liabilities + Equity, which is a fundamental equation in accounting that shows the relationship between a company's assets, liabilities, and equity.

This Summarizes All the Account Balances for the Financial Statements