Match the terms below with the correct definitions.
-Listing of the ending balances of all ledger accounts that proves the equality of total debits and credits
A)Trial balance
B)Normal balance
C)Trial balance error
D)Transposition
E)Credit
F)Trial balance account order
G)Footing
H)Debit
I)Compound entry

Question

Quizplus · Accepted Answer

The trial balance lists the ending balances of all ledger accounts to ensure that debits equal credits.

B) Normal balance
 Normal balance refers to whether an account typically has a debit or credit balance.

C) Trial balance error 
 A trial balance error occurs when the total debits and credits on a trial balance do not equal each other, indicating an error in the accounting records.

D) Transposition 
 Transposition is a common error in which two digits are accidentally switched when recording a transaction.

E) Credit 
 Credits are entries on the right side of an account and typically increase liability, equity, and revenue accounts.

F) Trial balance account order 
 Trial balance account order refers to the order in which accounts are listed on a trial balance, typically in the same order as the chart of accounts.

G) Footing 
 Footing refers to adding up the amounts in a column of numbers.

H) Debit 
 Debits are entries on the left side of an account and typically increase asset and expense accounts.

I) Compound entry 
 A compound entry is an accounting entry that affects more than two accounts.

Answer: A) Trial balance, B) Normal balance, C) Trial balance error, D) Transposition, E) Credit, F) Trial balance account order, G) Footing, H) Debit, I) Compound entry.

Match the Terms Below with the Correct Definitions