Answered: If the two totals in a trial balance…

If the two totals in a trial balance are equal, does that automatically mean there are no errors in the accounting cycle? Why or why not

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A misstatement related to which of the following assertions means the dollar amount of the account…

A: Completeness represents that the financial statement of the company would be required to be…

Q: Only those transactions involving material amounts should be authorized before they are executed. *…

Q: Which of the following errors will not affect the Trial balance? a. Wrong balancing of an account b.…

A: A trial balance's main function is to confirm that the entries in a firm's accounting system are…

Q: Discuss the errors which are not disclosed by a Trial Balance.

A: Solution The Trial Balance is not an accurate proof of the accuracy in ledger accounts. The total of…

Q: The purpose of testing the quality of debits and credits is to find errors recorded in the amounts.…

A: The purpose of testing the quality of debits and credits in accounting is to ensure that all…

Q: What kinds of errors would cause difference in the trial balance. Also listexamples that would not…

A: Generally, errors such as not posting properly, only posting half of the journal entry in the ledger…

Q: Which of the following is the postclosing trial balance not designed to verify?

A: The objective of this question is to understand what the postclosing trial balance is not designed…

Q: i need solution :

A: The objective of the question is to prepare general journal entries to record each transaction for…

Q: Use practical example to discuss how double entry principle is applied in extracting a trial balance

A: Trial balance refers to the worksheet which helps in detecting the mathematical errors that have…

Q: Which would cause the trial balance to have a not equal total

A: Trial balance is a statement that is prepared with the debit and credit balance of ledger accounts.

Q: state the differences between unearned revenue and accounts payable? both accounts are liabilities…

A: Definition: Normal balance refers to the excess of the amount on one side, over the amount on the…

Q: 16. When the There are no liens or other restrictions on accounts receivable, this indicates the…

A: Companies' claims or declarations regarding the basic veracity of the data in their financial…

Q: If the two totals of a trial balance are equal, does it mean that there are no errors in the…

A: The trial balance reflects all the journal entries made in the general ledger during the accounting…

Q: Posting errors are identified in the following table. In column (1), enter the amount of the…

A: 1Here's the completed table with your requested information:Description of Posting Error (1)…

Q: What are the different types of errors that are found in the books of accounts?

A: Accounting error: Accounting errors can be defined as omission of the fundamental accounting…

Q: what is stale checks in accounting

A: Introduction: Banks: Banks accepts deposits from the public and gives loans to the needy people or…

Q: If the two totals of a trial balance are equal, does this mean that there are no errors in the…

A: If the total debits equal the total credits, the trial balance is considered to be balanced and…

Q: How do you think the miss statement of fines will impact the important statement and balance sheet.

A: Given: The impact on income statement and balance sheet due to misstatements of funds.

Q: Provide an example of why a trial balance may not balance.

A: Trial balance refers to the statement or the worksheet which balances of all the ledgers that are…

Q: If the trial balance is out of balance and the difference between the debits and the credits is…

A: Trial balance is a table-like statement that comprises the ending balance of all t-accounts or…

Q: Does Derecognition only apply to the balance sheet? If so, Why? Why are other statements not used?…

A: Derecognition is the process of removing an asset or liability from the financial statements of a…

Q: What is an unadjusted trial balance? An adjusted trial balance?

A: Definition: A trial balance is a summary of all the ledger accounts. The trial balance is…

Q: The trial balance is a proof about the following accuracies except one: O a. That there are no other…

A: Trial balance is prepared with a view to ensure the arithmetic accuracy of account balances of the…

Q: If the total debit balance equals the total credit balance on the trial balance, the accounting…

A: Accounting records may contain many types of errors. Some of them are posting mistakes, compensating…

Q: Prior-period adjustments can arise from

A: Prior period items are expenses or incomes which arise in the current period as a result of errors…

Q: ndicate if it is an accounting mistake and provide an explanation for why it is or is not.

A: The Answer

Q: The notes receivable is debited by the bookkeeper instead of accounts receivable. What is the effect…

A: The assets have the debit balance and liabilities have the credit balance. Every transaction in the…

Q: The Accounting Cycle Question: What does it mean to adjust accounts for timing mismatches? What is…

A: Adjusting accounts for timing mismatches refers to the process of aligning the recognition of…

Q: how would management know if the calculations were entered incorrectly in any kind of reporting?

A: Accounting errors are inadvertent errors in accounting entries. When an error or mistake is…

Q: Would a change from Completed Contract to Percentage of Completion be a change in accounting…

A: Change in accounting principle means that change in how financial information is calculated, while…

Q: he collection of customer’s account is credited to accounts payable. What is the effect of the error…

A: Answer) The correct Option is (D) No Effect Justifications: If collection from customer is credited…

Q: How is a trial balance different from a balance sheet?

A: Trial Balance- Trial balance is a statement that is created with the intention of recording balances…

Q: At the beginning of the current fiscal year, the balance sheet for Davis Company showed liabilities…

A: Shareholder's equity helps investors and other companies in analyzing the growth or financial…

Question

If the two totals in a trial balance are equal, does that automatically mean there are no errors in the accounting cycle? Why or why not?

Definition Definition Statement that shows the ending balance of all the ledger accounts of a firm at the end of the accounting period. The trial balance is prepared after all the entries have been posted to the ledger accounts and assists in preparing the final accounts of a firm.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Is it necessary that a trial balance be taken periodically?What purpose does it serve?
If an account payable is left off the end of the period balance, what are the possible other accounts that may be misstated?
What alternative procedures should be applied to accounts that do not return confirmations?
Is it still necessary to record a transaction if it has no net effect on the accounting equation? explain
If an error is not detected in spite of all efforts and trial balance does not agree then what measure will be taken for the agreement of a trial balance? Should opened a rectification account Should opened an error account Should opened a compensation account Should opened a suspense account
I don't understand how to record the charges to work in process. How do i calculate it
Describe the process of accounting for errors that have been corrected.
Please answer with reason for all why the option is correct and why the other options are incorrect 52.Which error cannot be revealed on the preparation of trial balance? A.Wrong balancing of an account B.Compensatory errors C. Error of commission D.Wrong totalling of account
Shouldn't increase in accounts receivable be subtracted instead of added?
The Conity Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $13,000,000 bond issuance, the Electric Mixer Division used $9,500,000 and the Electric Lamp Division used $3,500,000 for expansion. Interest costs on the bond totaled $975,000 for the year. What amount of interest costs should be allocated to the Electric Mixer Division? (Round any intermediary calculations two decimal places and your final answer to the nearest dollar.)
Which error cannot be revealed on the preparation of the trial balance? Wrong Totalling of account Compensatory Errors Error of Commission Wrong Balancing of an account
What is the concept underlying the current rate method of translation? What is the concept underlying the temporal method of translation? How does balance sheet exposure differ under these two methods?