trial balance

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Related to trial balance: balance sheet

Trial balance

Prepared at the close of an accounting period, it is a record of general ledger account titles with their respective debit and credit balances.

trial balance

a listing of the balances on a firm's LEDGER accounts that is prepared prior to the PROFIT-AND-LOSS ACCOUNT and BALANCE SHEET, as an initial check on the arithmetic accuracy of the ledger accounts.

If the total of all DEBIT balances in ledger accounts equals the total of all CREDIT balances in ledger accounts then this suggests (but does not guarantee) that the DOUBLE-ENTRY ACCOUNTS have been accurately recorded and that the data from them might be used to prepare the profit-and-loss account and balance sheet.

References in periodicals archive ?
As Figure 5-1 illustrates, if you choose not to record adjusting journal entries, you prepare a trial balance called an Unadjusted Trial Balance, which does not display any adjustments.
What you can achieve: The trial balance plays a crucial role in internal reporting because it's the connector between the underlying detailed data (ledgers, subledgers, transactions) and end reporting.
The calculation of financial ratios is extremely simple with trial balance software, and it aids in the preparation of financial statements.
By providing a standardized way to link transactions, documents, ledgers, trial balance, and internal or external end reports, XBRL GL enables automated validation and reconciliation processes that are consistent, manageable, and ultimately much more efficient.
To create a postclosing trial balance, repeat step 3 above, highlighting all journal entries, including the closing entry.
More often than not, CPAs have to spend more time correcting client errors, working around the limitations of client G/L systems, importing data from many different incompatible systems and even re-keying trial balance data, than they spend performing their professional work.
Of course, the most obvious error is simply a trial balance where the debit and credit columns are not equal.
The only way to capture and reconcile the differences between the two reporting formats is by starting the conversion process at the trial balance level, where the differences between accounting principles and practices are reflected in the detail of accounts and balances.
This will be a real timesaver for CPAs who get trial balances and accounting details from their clients to enter into their own trial balance, tax or audit software.
The demo shows you how to publish your general ledger trial balance in XBRL.
The post closing trial balance of Green Company contains several errors.