Which document lists the balances of all general ledger accounts to verify arithmetic accuracy?

Which document lists the balances of all general ledger accounts to verify arithmetic accuracy?

• A. Income Statement
• B. Trial Balance
• C. Balance Sheet
• D. Cash Flow Statement

Answer: (B)

The trial balance is the document that lists every account balance from the general ledger to verify arithmetic accuracy. It collects the ending balances of all accounts, placing debits on one side and credits on the other. By totaling both sides, you can quickly see whether the books balance (total debits equal total credits); any mismatch points to arithmetic or posting errors that need correction. This internal tool is used before preparing the financial statements because it provides the complete set of balances needed to assemble the income statement, balance sheet, and cash flow statement. Those statements, in contrast, present summarized figures for specific accounts rather than the full ledger.

The trial balance is the document that lists every account balance from the general ledger to verify arithmetic accuracy. It collects the ending balances of all accounts, placing debits on one side and credits on the other. By totaling both sides, you can quickly see whether the books balance (total debits equal total credits); any mismatch points to arithmetic or posting errors that need correction. This internal tool is used before preparing the financial statements because it provides the complete set of balances needed to assemble the income statement, balance sheet, and cash flow statement. Those statements, in contrast, present summarized figures for specific accounts rather than the full ledger.