An account balance is
A) the total of the credit side of the account
B) the total of the debit side of the account
C) the difference between the increases (including the beginning balance) and decreases recorded in the account
D) the same as the balance sheet equation
E) not used in the real world

Question

Quizplus · Accepted Answer

An account balance is the difference between the increases (including the beginning balance) and decreases recorded in the account. This balance can be either a debit or credit balance depending on whether there were more debits or credits in the account. It is not simply the total of one side of the account or the balance sheet equation. It is indeed used in the real world as it helps individuals and businesses keep track of their financial transactions.

An Account Balance Is