Answered: The purpose of preparing a trial…

The purpose of preparing a trial balance is to: A) Calculate profitB) Find net assetsC) Check arithmetical accuracy of booksD) Determine depreciation

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 19GI

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Question

The purpose of preparing a trial balance is to:

A) Calculate profit
B) Find net assets
C) Check arithmetical accuracy of books
D) Determine depreciation

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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