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What is a trial balance?

A trial balance summarizes a company’s transactions from the general ledger. A trial balance includes all of the balance sheet and income statement accounts.

The trial balance will list out all of the accounts in the chart of accounts with the associated debit or credit balance. The trial balance can be prepared at the end of each reporting period. It is important to understand that the trial balance must sum to zero, which means that the total debits equals the total credits.


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