What is the primary purpose of a trial balance?

The primary purpose of a trial balance is to confirm that total debits equal total credits. This fundamental aspect of double-entry bookkeeping ensures the accounting records are mathematically correct, reflecting that every financial transaction has been accurately recorded in the accounting system. By verifying this balance, it allows accountants to identify any errors that may have occurred during the recording process.

While a trial balance does not directly evaluate profitability or calculate net income, it provides a reliable foundation for preparing financial statements, such as the income statement and balance sheet, where profitability can be evaluated. Additionally, ensuring proper documentation for rebates is a function of internal controls and record-keeping, not a primary purpose of a trial balance. Thus, confirming the equality of debits and credits is essential for the integrity of financial reporting and accuracy within the financial accounting framework.