The equality of recorded debits and credits is checked by preparing a(n):
A)journal entry analysis.
B)trial balance.
C)adjusted income statement.
D)statement of cash flows.

Question

Quizplus · Accepted Answer

The equality of recorded debits and credits is checked by preparing a trial balance, which lists all accounts and their balances (debit or credit). The total of debits should equal the total of credits, ensuring that the accounting equation (assets = liabilities + equity) is in balance. A journal entry analysis, adjusted income statement, and statement of cash flows do not necessarily ensure the equality of debits and credits.

The Equality of Recorded Debits and Credits Is Checked by Preparing