The Purpose of a Trial Balance Is to

question 206

Multiple Choice

The purpose of a trial balance is to

• A) affirm whether the figures in the account ledgers are correct and balanced.
• B) prepare a mockup of a real balance sheet.
• C) review the income statement accounts.
• D) meet a reporting requirement of the Securities and Exchange Commission (SEC).

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Definitions:

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution, aiming to provide an accurate description of the entire data set.

Median

The middle value in a data set, which divides the set into two equal halves, with an equal number of data points above and below it.

Mode

The value that appears most frequently in a data set. A mode can be used as a measure of central tendency, especially for categorical data.

Histogram

A type of graph that represents the distribution of numerical data by showing the number of data points that fall into various ranges or bins.