Which step in the process of measuring external transactions involves assessing the equality of total debits and total credits for the period?
A)Use source documents to determine accounts affected by the transaction.
B)Prepare a trial balance.
C)Analyze the impact of the transaction on the accounting equation.

Question

Quizplus · Accepted Answer

The step that involves assessing the equality of total debits and total credits for the period is to prepare a trial balance. A trial balance is a report that lists all accounts and their balances to ensure that the total debits equal the total credits. If they do not balance, it may indicate an error in recording the transactions. Therefore, option B is the correct answer. Option A describes the first step of the process, and Option C describes the step that involves analyzing the impact of the transaction on the accounting equation.

Which Step in the Process of Measuring External Transactions Involves