Trial Balance
Definition
A list of every account in the general ledger with its ending balance at a point in time, used to confirm debits equal credits and as the starting point for financial statements.
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Formula
Total Debit Balances = Total Credit BalancesThe trial balance is the accountant's view of the books in one page. Every balance on it should be explainable.
CPAs and lenders often ask for it directly. Watch for: unexplained balances in accounts like "Ask My Accountant" or opening balance equity, which point to unfinished cleanup.
Example
At year-end, your CPA asks for the trial balance to start preparing the tax return.