What is the primary purpose of a trial balance?

The primary purpose of a trial balance is to list all account balances for accuracy verification. A trial balance is a bookkeeping report that balances the total debits and credits of an organization. It serves as a tool to ensure that all transactions have been recorded correctly and that the general ledger is in balance. By compiling all account balances, the trial balance helps identify any discrepancies or errors in the account entries, making it an essential step prior to preparing financial statements.

The trial balance acts as a checkpoint to confirm that accounting records are accurate before further financial analysis or reporting occurs. If the total debits do not equal total credits, it signals that adjustments may be needed to rectify any mistakes in the postings. Overall, the trial balance is fundamental in maintaining the integrity of the accounting process.

In contrast, while the other options touch on important financial activities, they do not capture the specific role of a trial balance in the accounting cycle. Showing total income, calculating net worth, or preparing financial statements are subsequent actions that rely on the accuracy confirmed by the trial balance.