The Main Purpose of the Trial Balance Is to

question 82

Multiple Choice

The main purpose of the trial balance is to

• A) uncover errors in journalizing.
• B) uncover errors in posting.
• C) present useful information to financial statement users.
• D) prove the mathematical equality of debits and credits after posting.

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Definitions:

Financing Activities

Transactions and events where a business either raises funds from financial markets or repays funds previously raised; includes issuance or repurchase of equity and debt.

Cash Flow Statement

The cash flow statement is a financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Dividends

A portion of a company's earnings that is paid to shareholders as a distribution of profits.

Balance Sheet

A report detailing a firm's assets, liabilities, and owners' equity at a certain moment.