What is the purpose of a trial balance?

The purpose of a trial balance is to list account balances at a specific date. It serves as a tool for accountants to ensure that the total debits equal the total credits recorded in the accounting system. By providing a snapshot of all account balances, it helps to identify any discrepancies or errors that may have occurred during the recording of financial transactions. This is a crucial step in the accounting process, as it allows for the preparation of financial statements and facilitates a systematic review of accounts.

While other options refer to factors relevant to financial reporting, they do not accurately describe the primary function of a trial balance. It is specifically focused on compiling account balances rather than assessing overall gains or losses, summarizing cash flow, or evaluating company assets.