CPA Accountant Review Questions

Answer - E - A trial balance is a tool used internally to check that credits and debits are equal, the balance sheet is an external document to show the financial position of the company.

Key Takeaway: The trial balance is a working document used by the accounting department. It is usually not seen anywhere else within the company. The purpose of the trial balance is to help eliminate mathematical errors and ensure that debits and credits are equal. The balance sheet is one of the four financial statements used by a business. It is a snapshot of the business’s financial position, and thus is used both internally and externally by the business.