Asked by Lavkush Tamrakar on Apr 26, 2024
Verified
If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.
Trial Balance
A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the accuracy of financial recordings.
Journal Entries
Records of financial transactions entered into an accounting system, ensuring that the debits equal the credits in financial accounting records.
- Recognize the causes for discrepancies in a balanced trial balance.
Verified Answer
DR
Donte RicksApr 28, 2024
Final Answer :
False
Explanation :
A trial balance being in balance does not guarantee that all journal entries were posted correctly or that no errors were made. It only means that the total debits equal the total credits. There could still be errors that offset each other, such as posting to the wrong accounts or using incorrect amounts.
Learning Objectives
- Recognize the causes for discrepancies in a balanced trial balance.