The balance of an account:
A) must be determined after each transaction.
B) is entered on the debit side if the total debits to the account exceed the total credits to the account.
C) is put on the top of the T account next to the account name.
D) can be determined from the journal.

Question

Quizplus · Accepted Answer

The balance of an account is entered on the debit side if the total debits to the account exceed the total credits to the account. This is due to the accounting equation, which states that assets (which are typically found on the debit side) must equal liabilities and equity (which are typically found on the credit side). The balance must be determined after each transaction to ensure the accuracy of the account. The balance is not put on the top of the T account next to the account name, and while the journal provides information for transactions, it does not show the balance of an account.

The Balance of an Account