What is a trial balance used for?

A trial balance is primarily used to verify that total debits equal total credits in the ledger. This is a crucial step in the accounting process because it helps ensure that the accounts are balanced and that no errors have occurred during the recording of transactions. If the totals do not match, it indicates that there may be discrepancies that need to be investigated, such as transposition errors or incorrect entries.

The other options refer to different accounting or financial processes. Summarizing financial position over multiple years involves preparing financial statements, which is done after ensuring the ledger is balanced and correct. Estimating tax obligations relies on completed accounts and financial data, while evaluating the performance of account clerks is an assessment of personnel rather than a task associated with trial balances. Thus, the correct use of a trial balance focuses specifically on ensuring ledger accuracy by confirming that debits and credits are equal.