Which of the following statements about the unadjusted trial balance is not correct?
A) trial balance is an internal report used to determine whether total debits equal total credits.
B) A trial balance lists every account name in one column, usually in the order of assets, liabilities, stockholders' equity, revenues and expenses.
C) A trial balance shows the ending balances obtained from the ledger listed in either the debit or credit column.
D) You can assume that no errors were made in the recording of transactions if total debits equal total credits on the unadjusted trial balance.

Question

Quizplus · Accepted Answer

It is not safe to assume that there are no errors in the recording of transactions just because the total debits equal the total credits on the unadjusted trial balance. Some errors like transposition, omission, or compensating errors can result in equal debits and credits. The trial balance is just a tool to detect errors and ensure the equality of debits and credits, but it does not guarantee the absence of errors.

Which of the Following Statements About the Unadjusted Trial Balance