When a trial balance is in balance,
A)adjusting entries are not required.
B)the company has earned a net income.
C)the general ledger is free of errors.
D)the debit account balances equal the credit account balances.

Question

Quizplus · Accepted Answer

A trial balance is a listing of all the accounts in the general ledger and their balances. When the trial balance is in balance, it means that the total of the debit account balances equals the total of the credit account balances. This does not necessarily mean that there are no errors in the general ledger or that the company has earned a net income. Adjusting entries may still be required at the end of the accounting period to ensure that the financial statements are accurate.

When a Trial Balance Is in Balance