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If the Sum of the Credits to an Account Exceed

question 196

True/False

If the sum of the credits to an account exceed the sum of the debits to the account,the account will have a credit balance.


Definitions:

Debit Memo

A document issued by a seller of goods or services to a buyer, reducing the amount the buyer owes under the original invoice.

General Ledger

An exhaustive list of every financial transaction made by a company during its history, categorized by accounts.

Canceled Checks

Checks that have been paid by the bank and voided, serving as proof that payment was made.

Negotiable

Capable of being bought, sold, or transferred to another party through endorsement or delivery.

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