A trial balance is an accounting tool that essentially combines the balance sheet and the income statement. Accordingly, a company's trial balance must be in order prior to being used to prepare a ...

This is because a trial balance is not the same as an income statement; instead, its purpose is to show that the books are balanced. Numbers could have been entered incorrectly, something that ...

The transaction details contained in the general ledger are compiled and summarized at various levels to produce a trial balance, income statement, balance sheet, statement of cash flows ...

A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...