A trial balance is a list of all general ledger accounts and their balances at a point in time, used to verify that total debits equal total credits. Generated before producing financial statements. An unbalanced trial balance indicates a posting error (transposition, missing entry, incorrect debit/credit). Modern accounting software produces trial balances instantly. The adjusted trial balance is produced after period-end adjusting entries (depreciation, accruals, deferrals) and is the source data for the income statement and balance sheet. Audited financial statements always start from a documented trial balance reconciliation.
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Accounts Payable
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Amortization
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Audit
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Trial Balance
August 22, 2026 · Aditya Gupta
Accounting
Related terms
Accounts Payable
Accounts Payable (A/P) is money a company owes to suppliers for goods or services received but not yet…
Accounts Receivable
Accounts Receivable (A/R) is money owed to a company by customers for goods or services delivered on credit.…
Accrual Accounting
Accrual accounting recognizes revenues when earned (regardless of cash receipt) and expenses when incurred (regardless of cash payment)…
Accrued Expense
An accrued expense is a cost recognized in the income statement before cash is paid — recorded as…
Amortization
Amortization is the systematic allocation of intangible asset cost over its useful life — analogous to depreciation but…
Audit
An audit is an independent examination of a company's financial records, internal controls, and statements — typically conducted…
