ACC 280 WEEK 2 DQ 3 - the double-entry accounting system....

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Week 2 When is the trial balance prepared? What is the purpose of preparing a trial balance? What does the trial balance tell you? What does the trial balance not tell you? Why not use the Trial Balance to report financial information internally and externally? What limitations does it have over formal financial statements?
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After you have analysed and journalised your transactions, and after you've posted your journal entries to the General Ledger. Preparing a trial balance for a company serves to detect any mathematical errors that have occurred in
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Unformatted text preview: the double-entry accounting system. Provided the total debts equal the total credits, the trial balance is considered to be balanced, and there should be no mathematical errors in the ledgers. However, this does not mean there are no errors in a company's accounting system. For example, transactions classified improperly or those simply missing from the system could still be material accounting errors that would not be detected by the trial balance procedure....
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ACC 280 WEEK 2 DQ 3 - the double-entry accounting system....

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