Question

TB TF Qu. 03-119 A business's chart of accounts... A business's chart of accounts is prepared to verify the equality of debits and credits True or False True False

Answer 1

Yes, the above statement is correct.

Accountants use a trial balance to test the equality of their debits and credits. A trial balance is a listing of the ledger accounts and their debit or credit balances to determine that debits equal credits in the recording process. Preparing and adjusting trial balances aid in the preparation of accurate financial statements. Although you can prepare a trial balance at any time, you would typically prepare a trial balance before preparing the financial statements.