Which of the following errors affects the agreement of a Trial Balance?
Correct answer: A. Mistake in balancing an account
- A. Mistake in balancing an account
- B. Omitting to record a transaction entirely in the subsidiary books
- C. Recording of a wrong entry in the subsidiary books
- D. Posting an entry on the correct side but in the wrong account
Explanation
An error in balancing an account can place an incorrect balance in the Trial Balance and make its totals disagree. Complete omission, a wrong account on the correct side, or an incorrect entry posted equally on both sides may leave agreement unaffected.
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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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