Which document shows the balances of all ledger accounts to verify that debits equal credits?

Which document shows the balances of all ledger accounts to verify that debits equal credits?

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

Answer: (A)

In double-entry accounting, you compile a listing of every ledger balance to check that debits and credits are in balance. This document is the Trial Balance. It brings together all account balances and shows debits on one side and credits on the other, so you can quickly see whether the totals match. If they don’t, it points to possible entry errors, omissions, or mispostings that need correction before preparing financial statements. The Income Statement, Balance Sheet, and Cash Flow Statement summarize performance or position and are derived from ledger data, but they do not themselves serve as the direct check that all debits equal credits.

In double-entry accounting, you compile a listing of every ledger balance to check that debits and credits are in balance. This document is the Trial Balance. It brings together all account balances and shows debits on one side and credits on the other, so you can quickly see whether the totals match. If they don’t, it points to possible entry errors, omissions, or mispostings that need correction before preparing financial statements. The Income Statement, Balance Sheet, and Cash Flow Statement summarize performance or position and are derived from ledger data, but they do not themselves serve as the direct check that all debits equal credits.