A trial balance is prepared to

A.

Detect fraud

B.

Ascertain losses in a trading period

C.

Determine opening capital

D.

Test arithmetical accuracy of ledger entries

Correct answer is D

Preparing a trial balance for a company serves to detect any mathematical errors that have occurred in the double-entry accounting system. If the total debits equal the total credits, the trial balance is considered to be balanced, and there should be no mathematical errors in the ledgers.