Asked by Hailey Cranor on Apr 24, 2024
Verified
While in the process of posting from the journal to the ledger,a company failed to post a $500 debit to the Equipment account.The effect of this error will be that:
A) The Equipment account balance will be overstated.
B) The trial balance will not balance.
C) The error will overstate the debits listed in the journal.
D) The total debits in the trial balance will be larger than the total credits.
E) The error will overstate the credits listed in the journal.
Equipment Account
An account on a company's balance sheet that reports the value of the company's equipment used in operations, less any accumulated depreciation.
Posting
The process of recording financial transactions in the ledger of a company as part of the accounting cycle.
Trial Balance
A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.
- Detect frequent errors in accounting logs and grasp their influence on financial disclosures.
Verified Answer
JN
Jordan NewsomMay 02, 2024
Final Answer :
B
Explanation :
Failing to post a $500 debit to the Equipment account means that the debit side of the ledger will be $500 less than it should be, causing the trial balance to not balance since the sum of debits will not equal the sum of credits.
Learning Objectives
- Detect frequent errors in accounting logs and grasp their influence on financial disclosures.