An account balance is:
A) Assets = liabilities + equity.
B) Always a credit.
C) The difference between the total debits and total credits for an account including the beginning balance.
D) The total of the debit side of the account.
E) The total of the credit side of the account.

Question

Quizplus · Accepted Answer

An account balance is the difference between the total debits and total credits for an account, including the beginning balance. This is because every transaction in accounting follows the basic accounting equation (A = L + E), which means that every debit must have an equal and opposite credit. Therefore, the balance is the sum of all these transactions, taking into account any beginning balance that may exist. An account balance can be either a credit or a debit, depending on which side of the equation the balance falls on.

An Account Balance Is