trial balance Synonyms
No Synonyms and anytonyms found
trial balance Meaning
trial balance (n)
a balance of debits and credits in double-entry bookkeeping; drawn up to test their equality
trial balance ()
The testing of a ledger to discover whether the debits and credits balance, by finding whether the sum of the personal credits increased by the difference between the debit and credit sums in the merchandise and other impersonal accounts equals the sum of personal debits. The equality would not show that the items were all correctly posted.
trial balance Sentence Examples
- After recording transactions, a trial balance is prepared to ensure the accounting equation balances.
- The trial balance lists all account balances in debit and credit columns to check their equality.
- An accountant uses a trial balance to verify the accuracy of accounting entries.
- The presence of errors is indicated by an unbalanced trial balance, requiring further investigation.
- The trial balance balances when the total debits equal the total credits, indicating a flawless accounting system.
- The trial balance is a crucial step in preparing financial statements.
- Adjustments are made based on the trial balance to ensure accuracy before closing the books.
- Errors in the trial balance can lead to incorrect financial statements, jeopardizing decision-making.
- The trial balance provides a snapshot of the company's financial position at a specific point in time.
- Businesses regularly conduct trial balances to maintain the integrity of their accounting records.
FAQs About the word trial balance
a balance of debits and credits in double-entry bookkeeping; drawn up to test their equalityThe testing of a ledger to discover whether the debits and credits b
No synonyms found.
No antonyms found.
After recording transactions, a trial balance is prepared to ensure the accounting equation balances.
The trial balance lists all account balances in debit and credit columns to check their equality.
An accountant uses a trial balance to verify the accuracy of accounting entries.
The presence of errors is indicated by an unbalanced trial balance, requiring further investigation.
