Which error may exist even when a trial balance agrees?
Correct answer: B. A transaction completely omitted from the books
- A. A debit entry posted without any credit entry
- B. A transaction completely omitted from the books
- C. A debit total added more than the credit total
- D. A ledger balance transferred to the wrong side
Explanation
If a transaction is completely omitted, neither its debit nor its credit is recorded, so the trial balance can still agree. An entry with only one side recorded would normally cause disagreement.
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About Ledger Accounts and the Trial Balance
Ledger accounts collect transactions under individual headings and use debit and credit sides to determine balances. The trial balance lists those balances to check arithmetical agreement before financial statements are prepared, but it does not reveal every error, such as complete omission, compensating errors or entries made in the wrong account.
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