Final answer:
A trial balance ensures all financial data in the ledgers are in balance, meaning total debits match total credits, and it aids in the preparation of financial statements like the balance sheet. It is not directly ready for audit, publication, or tax filing without additional steps.
Step-by-step explanation:
A trial balance is a summary of all financial data in the ledgers which ensures the figures are correct and in balance. This means that the total debits equal the total credits, reflecting the basic principle of double-entry bookkeeping. The trial balance is an internal document, primarily used by the company to prepare for financial statements, which means it is not directly 'ready for audit', 'ready for publication', nor 'ready for tax filing' without further adjustments and scrutiny. A complete trial balance will include sums up for various types of transactions and figures such as exports, imports, and the balance which contributes to the current account balance.
The concept of a balance sheet is similarly a financial statement that also needs to be in balance, showcasing assets on one side and liabilities plus equity on the other, ensuring that the equation Assets = Liabilities + Equity holds true. The connection between a trial balance and a balance sheet is crucial as the former aids in the preparation of the latter, which provides a snapshot of the financial condition of a business at a specific point in time. A balance sheet can also be called a T-account due to its two-column format.