Uses of Trial Balance - SS1 Accounting Past Questions and Answers - page 1
What is the primary purpose of the trial balance?
To detect errors in the accounting records
To prepare financial statements
To evaluate financial performance
To track changes over time
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When is the trial balance typically prepared?
At the beginning of an accounting period
Midway through an accounting period
At the end of an accounting period
As needed during an accounting period
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What does an unbalanced trial balance indicate?
That there are no errors in the accounting records
That the accounting period has not yet ended
That there is an error in the accounting records
That the company's financial performance is strong
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What is the purpose of categorizing accounts into financial statement categories?
To identify errors in the accounting records
To prepare financial statements
To evaluate financial performance
To track changes over time
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How can the trial balance be used to track changes over time?
By comparing trial balances from different accounting periods
By identifying errors in the accounting records
By preparing financial statements
By evaluating financial performance
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How does the trial balance help ensure the accuracy of financial statements?
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What are some common errors that the trial balance can help detect?
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