If the Sum of the Debits Is Not Equal to the Sum

question 79

Multiple Choice

If the sum of the debits is not equal to the sum of the credits in a trial balance, then

• A)there is no concern because the two amounts are not meant to be equal.
• B)the chart of accounts does not balance.
• C)it is safe to proceed with the preparation of financial statements.
• D)it is likely that an error was made in journalizing or posting transactions or in computing the account balance.

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Definitions:

Collaborative Consumption

A financial framework that involves individuals directly exchanging, leasing, or sharing products and services through online platforms that are community-oriented.

Consumption Models

Business models that are based on the consumption of goods or services rather than their purchase, typically involving subscriptions or pay-per-use arrangements.

Necessary Knowledge

Essential information or understanding required to perform tasks, make decisions, or solve problems in a specific domain or activity.

GEO

is an abbreviation for Geostationary Earth Orbit, a circular orbit around the Earth having a period of 24 hours, often used for satellite communications and weather monitoring.