asked 38.2k views
3 votes
The trial balance shows all accounts and their balances and proves that debits equal credits.

a. True
b. False

asked
User Arminb
by
7.5k points

1 Answer

4 votes
True. Because if the debits and credits have the equal or the same totals, the trial balance, therefore, is balanced. However, if the trial balance is balanced, it doesn't signify that the accounting system of a company has no error, thus, making the statement false. For example, transactions that are improperly classified or those transactions that are missing could be material errors in their accounting system and sometimes these errors could not be disclosed in the trial balance. 
answered
User Gingo
by
7.7k points
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