Practice - Purpose of Trial Balance
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Practice Questions
Test your understanding with targeted questions
What is a trial balance?
💡 Hint: Think about the purpose it serves in accounting.
Why do accountants prepare a trial balance?
💡 Hint: Consider how it relates to debits and credits.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is the purpose of a trial balance?
💡 Hint: Consider what purpose it serves within accounting.
True or False: A trial balance can help detect errors in the accounting records.
💡 Hint: Think about how the accuracy of the trial balance reflects on the records.
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Challenge Problems
Push your limits with advanced challenges
Create a trial balance for a small business with the following transactions: $4,000 Cash, $1,000 Accounts Receivable, $3,000 Accounts Payable, $2,000 Capital. What should the trial balance reflect?
💡 Hint: Break it down by account type and ensure both sides tally.
If a business's trial balance totals $20,000 in debits but $18,000 in credits, what might this indicate, and what steps can you take?
💡 Hint: Think about reviewing each transaction recorded.
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Reference links
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