Which of the following statements is true?
A)Adjusting entries are recorded after the closing entries have been recorded.
B)Equal totals in a trial balance guarantees that no errors were made in the recording process.
C)Debits are equal to credits only after closing entries have been recorded.
D)The balance in the retained earnings account in the trial balance will equal the retained earnings balance on the balance sheet only after closing entries have been posted to the general ledger.

Question

Quizplus · Accepted Answer

Every entry (not only closing entries)must include at least one debit to an account and at least one credit to an account.This system is called double-entry accounting.Adjusting entries are recorded before (rather than after)the closing entries are recorded.If the debit total does not equal the credit total on the trial balance,the accountant knows to search for an error.Even if the totals are equal,however,there may be errors in the accounting records.Prior to posting closing entries,the balance in the retained earnings account will be the balance at the beginning of the accounting period.Only after closing entries are posted will the trial balance reflect the same retained earnings account balance as the balance sheet.

Which of the Following Statements Is True