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    Question

    A "Trial Balance" is prepared to

    check:
    A The financial position of the business. Correct Answer Incorrect Answer
    B The profitability of the business. Correct Answer Incorrect Answer
    C The arithmetical accuracy of the ledger. Correct Answer Incorrect Answer
    D The market value of assets. Correct Answer Incorrect Answer
    E The honesty of the accountant. Correct Answer Incorrect Answer

    Solution

    While it doesn't prove total accuracy (as errors of principle may exist), a tallying trial balance indicates that debits equal credits arithmetically.

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