What Is Trial Balance?
A report listing all general ledger account balances to verify that debits equal credits.
Detailed Explanation
Prepared before financial statements to catch posting errors. Discrepancies indicate missing or incorrect journal entries that must be resolved.
Example
The month-end trial balance reveals a $200 imbalance traced to a misposted vendor invoice.
Why It Matters
A balanced trial balance is the prerequisite for accurate financial reporting.
Related Resources
Related Accounting Basics Terms
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