An internal accounting report that is prepared prior to recording the adjusting entries. Its
purpose is to verify that the total amount of debit balances in the general ledger accounts is
equal to the total amount of credit balances.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.