O-LevelAccountingVerification of accounting records7707/11 · Oct/Nov 2013 · Q111 Mark

Why does a business prepare a trial balance?

Ato calculate the profit or loss

Bto check the arithmetical accuracy of the ledger

Cto check the cash and bank balances

Dto show the financial position of the business

✓ Correct answer

B: to check the arithmetical accuracy of the ledger

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Topic: Verification of accounting records, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2013 Paper 1 Variant 1, question 11.

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