Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means:
A) all of the information from the journal was correctly transferred to the ledger.
B) all accounts have their correct balances in the ledger.
C) only the ledger is accurate; the journal may be incorrect.
D) only that the debit dollar amounts equal the credit dollar amounts.

Question

Quizplus · Accepted Answer

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger simply confirms that the accounting equation is balanced at that level. It does not necessarily mean that all transactions were recorded correctly or transferred accurately from the journal to the ledger.

Proof That the Dollar Amount of the Debits Equals the Dollar