Final answer:
A trial balance is a statement prepared to test the equality of debits and credits in the general ledger. If prepared correctly, the total of the debit balances should equal the total of the credit balances.
Step-by-step explanation:
The statement in question is TRUE. A trial balance is a statement that is prepared to test the equality of the debits and credits in the general ledger. It lists all the accounts with their respective debit and credit balances.
When the trial balance is prepared correctly, the total of the debit balances should equal the total of the credit balances, indicating that the double-entry bookkeeping system has been followed and all transactions have been entered correctly.
For example, if the total credits in the trial balance amount to $10,000, the total debits should also amount to $10,000, ensuring that equal amounts of debits and credits were posted to the ledger.