Practice question · Multiple choice
The trial balance balances perfectly. Can we be sure there are no errors?
Hints
- What if a transaction was never recorded at all?
- What if two errors cancel each other out?
Show the answer
D. No; several kinds of error still balance
Why
A balanced trial balance proves arithmetic, not accuracy. A purchase posted to the wrong account, a transaction omitted entirely, or two opposite errors of equal size all leave debits equaling credits, the balance is necessary but not sufficient.
Practise The Accounting Cycle
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