A trial balance is prepared to
-
A.
detect fraud -
B.
ascertain losses in a trading period -
C.
determine opening capital -
D.
test arithmetical accuracy of ledger entries
Correct Answer: Option D
Explanation
Preparing a trial balance for a company serves to detect any mathematical errors that have occurred in the double-entry accounting system. If the total debits equal the total credits, the trial balance is considered to be balanced, and there should be no mathematical errors in the ledgers.