Explain the importance of the Trial Balance State your opinion on the following statement: "If the debits and the credits in the Trial Balance equal, then everything must be correct". Elaborate your answer.

Explain the importance of the Trial Balance State your opinion on the following statement: "If the debits and the credits in the Trial Balance equal, then everything must be correct". Elaborate your answer.

Name: Explain the importance of the Trial BalanceState your opinion on the f
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Description: Explain the importance of the Trial BalanceState your opinion on the following statement: "If the debits and the credits in the Trial Balance equal, then everything must be correct". Elaborate your answer.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter2: T Accounts, Debits And Credits, Trial Balance, And Financial Statements

Section: Chapter Questions

Problem 6DQ: List two reasons why the debits and credits in the trial balance might not balance.

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Similar questions

State your opinion on the following statement: "If the debits and the credits in the Trial Balance equal, then everything must be correct". Elaborate your answer.
Explain why the debit and credit total of a trial balance should always be equal? What are the situations that a trial balance total will not be equal? Explain with the help of at least two examples
The trial balance is used to prove the equality of total debits and total credits of all accounts in the ledger; it is also used to prepare the financial statements. Select one: O True O False
Complete the following table by indicating for (a) through (g) whether the proper answer is debit or credit:
List two reasons why the debits and credits in the trial balance might not balance.
Why is the adjusted trial balance trusted as a reliable source for building the financial statements?
When do you prepare the Adjusted Trial Balance? After the Adjusted trial balance has been prepared, are we sure that the balances are free from errors? Can we prepare the financial statements directly from these balances? How?
Which of the following statements about a trial balance is correct? Select one: All of these answer choices are correct. A trial balance proves the equality of the debits and credits in the ledger. A trial balance is typically prepared before adjusting entries are recorded. An adjusted trial balance provides a list of open accounts and their balances that are used in preparing financial statements.
Analyze each separate transaction by showing its effects on the accounting equation- specifically, identify the accounts and amounts for each transaction. (Enter all amounts as positive values.)
The balance of an account is determined by a.adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum b.always subtracting the debits from the credits c.adding all of the debits to all of the credits d.always subtracting the credits from the debits The matching principle a.requires that the dollar amount of debits equal the dollar amount of credits on a trial balance b.states that the revenues and related expenses should be reported in the same period c.addresses the relationship between the journal and the balance sheet d.determines whether the normal balance of an account is a debit or credit Using accrual accounting, expenses are recorded and reported only a.when they are incurred, whether or not cash is paid b.when they are incurred and paid at the same time c.if they are paid before they are incurred d.if they are paid after they are incurred
The matching principle a.requires that the dollar amount of debits equal the dollar amount of credits on a trial balanceb.states that the revenues and related expenses should be reported in the same periodc.addresses the relationship between the journal and the balance sheetd.determines whether the normal balance of an account is a debit or credit
Which of the following procedures is correct when determining the amount to enter within the adjusted trial balance section of the worksheet? Multiple Choice If the trial balance section has a debit balance and the entry in the adjustments section is a debit, then subtract the amount in the adjustments section from the amount in the trial balance section. If the trial balance section has a debit balance and the entry in the adjustments section is a credit, then subtract the amount in the adjustments section from the amount in the trial balance section. If the trial balance section has a credit balance and the entry in the adjustments section is a credit, then subtract the amount in the adjustments section from the amount in the trial balance section. If the trial balance section has a credit balance and the entry in the adjustments section is a debit, then add the two amounts together.