If the Debit and Credit Column Totals of a Trial

question 191

Multiple Choice

If the Debit and Credit column totals of a trial balance are equal, then:

• A) All transactions have been recorded correctly.
• B) All entries from the journal have been posted to the ledger correctly.
• C) All ledger account balances are correct.
• D) The total debit entries and total credit entries are equal.
• E) The balance sheet would be correct.

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Definitions:

Credit Sale

A transaction where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Record Keeping

The practice of maintaining and preserving documents, files, and records related to financial transactions for future reference.

Credit Terms

The conditions under which credit is extended by a seller to a buyer, including payment deadlines and any possible discounts for early payment.

General Journal Entries

Entries made in the general journal to record financial transactions in the accounting system.