Debit balance = Credit balance in a trial balance indicates that
A. No error in recording transactions
B. No error in posting entries to ledger accounts
C. Account balances are correct
D. Mathematically Capital + Liabilities = Assets
Answer: Option D
Solution(By Examveda Team)
Debit balance = Credit balance in a trial balance indicates that Mathematically Capital + Liabilities = Assets.This Question Belongs to Commerce >> Accounting
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Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Despite the error in the ledger, it is possible that the trial balance will be balanced due to the double-entry system. Whereas, the financial statement (Balance Sheet) is the sixth step of the Accounting Cycle after adjusted trial balance. The trial balance will ensure that the Balance Sheet will be balanced.
"SO THE OPTION D IS CORRECT"
In trial balance including asset, liabilities, expenses and income
Capital + liabilities = assets is collected balance sheet
So answer is B ,''no error in posting entries to ledger account''