The Main Purpose of a Trial Balance Is

question 74

Multiple Choice

The main purpose of a trial balance is

• A) to serve as a basic internal control.
• B) to assist in preparation of the financial statements.
• C) to prove the mathematical equity of debits and credits after posting.
• D) to uncover errors in journalizing and posting.

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Definitions:

Flexible Budget

An elastic budget that varies according to fluctuations in volume or operational activities.

Revenue

The total income generated by the sale of goods or services before any expenses are deducted.

Shipping Container

A large container designed for transport and storage of goods by various modes of transportation, including ship, rail, and truck.

Planning Budget

A budget prepared for a specific level of activity, used for planning purposes.