A trial balance that is out of balance indicates that:
A)The number of ledger accounts with debit balances is not equal to the number of accounts with credit balances.
B)A debit has been posted to the wrong account.
C)There is not an equality of debit and credit amounts in the ledger.
D)A journal entry has been completely omitted from the posting process.

Question

Quizplus · Accepted Answer

A trial balance is a statement showing the total debits and credits of each account in the ledger. If the trial balance is out of balance, it means that the total of the debit accounts does not equal the total of the credit accounts. This could be due to errors in posting, such as entering incorrect amounts or posting to the wrong accounts. However, it could also be due to errors in journal entries or the failure to record transactions altogether. Therefore, Choice C - "There is not an equality of debit and credit amounts in the ledger" - is the best choice as it covers all possible causes of an out-of-balance trial balance.

A Trial Balance That Is Out of Balance Indicates That