An account balance is
A)The same as the balance sheet equation.
B)Not used in the real world.
C)The total of the debit side of the account.
D)The total of the credit side of the account.
E)The difference between the increases (including the beginning balance)and decreases recorded in the account.

Question

Quizplus · Accepted Answer

An account balance is the difference between the increases (including the beginning balance) and decreases recorded in the account. It could be a positive or negative amount depending on whether the credit side or the debit side is larger. The other options are incorrect: A) The balance sheet equation is Assets = Liabilities + Equity and is not the same as the account balance. B) Account balances are used in the real world to keep track of financial transactions. C) The total of the debit side of an account is not necessarily the account balance. D) The total of the credit side of an account is not necessarily the account balance.

An Account Balance Is