Which of the following statements is true regarding a trial balance that balances?
A)All transactions have been properly recorded.
B)There are no missing transactions.
C)This equality can only be achieved after closing entries have been recorded and posted to the ledger accounts.
D)The equality of debits and credits has been proven.

Question

Quizplus · Accepted Answer

The trial balance only proves the equality of debits and credits.It does not detect missing or incorrect entries that were recorded with equal debits and credits.If the debit total does not equal the credit total on the trial balance,adjusted trial balance,or post-closing trial balance,the accountant knows to search for an error.

Which of the Following Statements Is True Regarding a Trial