What is the primary purpose of a trial balance?

The primary purpose of a trial balance is to ensure that all debit balances equal credit balances before any adjustments are made. This is an essential step in the accounting process, as it verifies that the bookkeeping entries are mathematically correct and that the accounts are balanced. A trial balance serves as a vital tool for accountants to confirm the accuracy of recorded transactions and to detect any discrepancies before proceeding to create financial statements. By producing a trial balance, businesses can verify that their ledgers are in order and make necessary corrections to account balances ahead of preparing the final financial reports.

Other choices, while related to financial reporting, do not capture the fundamental purpose of a trial balance. Summarizing revenues and expenses, calculating net income, or preparing the cash flow statement are subsequent steps in the accounting cycle that rely on accurate balance data, but they are not the primary objective of constructing a trial balance.