What is the purpose of a 'trial balance'?

The purpose of a 'trial balance' is fundamentally to verify that the accounting entries in a ledger are mathematically accurate. It does this by ensuring that the total debits equal the total credits. This is a critical aspect of double-entry bookkeeping, as it serves as a preliminary step in the accounting cycle before preparing financial statements. If the trial balance does not balance, it indicates that there may be errors in the recorded transactions that need to be investigated and rectified.

The other options do not accurately capture the primary function of a trial balance. A detailed income statement focuses on revenues and expenses over a specific period, whereas a trial balance does not work at a performance level; it only provides totals for debits and credits for all accounts. Outlining financial performance refers to statements that showcase an entity's profit or loss, which is not the aim of a trial balance. Summarizing asset valuation relates to a balance sheet, detailing the company's assets, liabilities, and equity, rather than the simple verification of accounts that a trial balance accomplishes.