Which of the following statements is true?
A)If a debit entry is made to an account in the general journal, the same account will receive a credit entry when the amount is posted to the general ledger.
B)If all transactions are correctly posted to the general ledger, the sum of the accounts with debit balances should be equal to the sum of the accounts with credit balances.
C)Posting occurs when numbers in the general ledger accounts are transferred to the general journal.
D)If the sum of the debit balances equals the sum of the credit balances, this proves that there were no mistakes made in the posting process.

Question

Quizplus · Accepted Answer

This is the fundamental rule of double-entry accounting: for every debit entry, there must be a corresponding credit entry. Therefore, the sum of debits and the sum of credits must be equal. Option A is incorrect because a debit entry and a credit entry must be made in two different accounts. Option C is incorrect because posting involves transferring numbers from the journal to the ledger. Option D is incorrect because even if the sum of debits equals the sum of credits, there still may be errors in the posting process.

Which of the Following Statements Is True