What is the purpose of a trial balance in accounting?

The purpose of a trial balance in accounting is primarily to prove the equality of debit and credit balances in the ledger accounts. In double-entry accounting, every transaction affects at least two accounts, maintaining a balance between debits and credits. Preparing a trial balance involves listing all the account balances—both debits and credits—ensuring that they are equal. This is essential because it confirms that the books are mathematically accurate and helps identify any discrepancies that may indicate errors in the recording of transactions.

While analyzing income statements, preparing financial forecasts, and calculating tax obligations are important aspects of financial accounting, they are not the primary function of a trial balance. Instead, these activities typically occur after the trial balance is complete, using the accurate ledger balances to provide further insights into a business's financial situation. Thus, the correct focus of a trial balance is its role in ensuring the integrity of the accounting records through the equality of balances.