alleryStart learning →Ledger totals for each account are summarized in a trial balance. What does the trial balance confirm?
AThe market value of the fixed assets
BThe liquidity of the current assets
CThe tax rate applied to the profits
DThe accuracy of the figures
Answer & Solution
Correct answer: D. The accuracy of the figures
1. Ledger totals for each account are summarized in a trial balance.
2. The trial balance is used to confirm the accuracy of the figures.
3. Those confirmed values are then used to prepare the financial statements and management reports.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 14 "Using Financial Information and Accounting", section 14.3 Basic Accounting Procedures_
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