What is the primary use of a trial balance?

The primary use of a trial balance is to verify that total debits equal total credits in the accounting records. This is a crucial step in ensuring the accuracy of the financial statements. The trial balance provides a summary of all the general ledger accounts and their balances, allowing accountants to check for any discrepancies that may have occurred during the recording of transactions. If the total debits do not equal the total credits, it indicates that there may be an error in the accounting entries that must be investigated and corrected before proceeding to prepare financial statements.

While forecasting future financial performance, preparing tax returns, and determining a company's profit margin are important aspects of accounting and financial analysis, they don't specifically relate to the primary function of a trial balance. The trial balance serves as a tool for maintaining the integrity of financial records rather than analyzing or projecting financial data.