A Trial Balance May Prove That Debits and Credits Are

question 50

Multiple Choice

A trial balance may prove that debits and credits are equal, but

• A) an amount could be entered in the wrong account.
• B) a transaction could have been entered twice.
• C) a transaction could have been omitted.
• D) All of these answer choices are correct.

---

Definitions:

Availability Bias

The tendency to judge the likelihood of an event by the ease with which examples come to mind, which can lead to misjudgment of actual probability.

Reasoning Errors

Mistakes or flaws in the process of thinking, assessing, or coming to conclusions, often leading to inaccurate judgments or decisions.

Financial Decisions

Choices made regarding the management, investment, and utilization of funds within an organization.

Behavioral Finance

A field of finance that proposes psychology-based theories to explain stock market anomalies.