Question

Match the descriptions to the possibility of being addressed by a Trial Balance.

1. can detect the accuracy of the accounting process

2. can help prepare the income statement

3. can help check whether the debit side is equal to the credit side

4. helps serve as a proof of the application of the double-entry system

5. can help check whether a particular transaction has been completely omitted

Answer 1

The trial balance is a summary of all ledger accounts of the company which is helpful in preparing the financial statements. It provides details of debit and credit balance in accounts and the sum of the debits and credits should match which serves as a proof of application of double entry system.

However, trial balance cannot detect the accuracy of accounting process and can not help in checking if a particular transaction has been completely omitted.

Basis the above, descriptions 2,3 and 4 are addressed by trial balance.