In Trial Balance,if the Sum of the Debits Is NOT

question 215

Multiple Choice

In trial balance,if the sum of the debits is NOT equal to the sum of the credits,what does this signify?

• 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) An error was probably made in journalizing or posting transactions or in computing the account balance.

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Definitions:

Smart Card

Much like an automated teller machine card; one use is within corporations to control access to information by employees.

Automated Teller Machine

An electronic banking machine that allows customers to complete basic transactions without the need for a branch representative.

Information Access

The ability or the right to obtain and use information, typically emphasizing ease or barriers to entry in the context of technology or data.

Cash Management

The process of collecting, managing, and investing a company's cash flow in a way that optimizes its financial stability and profitability.