If a transaction is completely omitted from the books of accounts, will it affect the agreement of a trial balance?
Correct answer: B. No
- A. Yes
- B. No
- C. Transactions can't be omitted
- D. none of these
Explanation
A completely omitted transaction leaves both its debit and credit sides unrecorded, so the trial balance totals remain equal. The omission still causes the accounts and financial results to be incomplete.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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