If the sum of the debits is not equal to the sum of the credits in a trial balance, then
A)there is no concern because the two amounts are not meant to be equal.
B)the chart of accounts does not balance.
C)it is safe to proceed with the preparation of financial statements.
D)it is likely that an error was made in journalizing or posting transactions or in computing the account balance.

Question

Quizplus · Accepted Answer

If the sum of the debits is not equal to the sum of the credits in a trial balance, it indicates that there is an error in the accounting process - either in journalizing or posting transactions, or in computing the account balance. Therefore, it is not safe to proceed with the preparation of financial statements until the error is identified and corrected. Choice A is incorrect because the sum of debits and credits in a trial balance is meant to be equal. Choice B is a vague statement and does not provide any explanation of the situation. Choice C is also incorrect because it is not safe to prepare financial statements without addressing the discrepancy in the trial balance.

If the Sum of the Debits Is Not Equal to the Sum