An account balance is
A) not relevant in the accounting cycle.
B) the sum of all credit transactions within an account.
C) The net difference between the increases (including the beginning balance) and decreases recorded in the account.
D) the sum of all debit transactions within an account.

Question

Quizplus · Accepted Answer

An account balance is the net difference between the increases (including the beginning balance) and decreases recorded in the account. It can be either a debit or a credit balance, depending on whether the total debits or credits are larger. Therefore, option C is the correct answer. The other options are incorrect because an account balance is relevant in the accounting cycle, and it is not necessarily the sum of all debit or credit transactions within an account.

An Account Balance Is