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    Question

    The preparation of a trial balance is

    for:
    A Locating errors of commission. Correct Answer Incorrect Answer
    B Locating errors of principle. Correct Answer Incorrect Answer
    C Locating clerical errors. Correct Answer Incorrect Answer
    D Locating compensating errors. Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    The preparation of a trial balance is for locating clerical errors in the accounting records. The trial balance is a statement of all the ledger accounts with their debit and credit balances, and it ensures that the total of all the debit balances equals the total of all the credit balances.

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