Which of the following will affect the agreement of a trial balance?
Correct answer: B. Partial omission of a transaction
- A. Complete omission of a transaction
- B. Partial omission of a transaction
- C. Error of principle
- D. Compensating errors
Explanation
A partial omission records only one side of a transaction, so debit and credit totals will differ and the trial balance will disagree. Complete omissions, errors of principle, and compensating errors can leave both totals equal.
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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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If debit balances = credit balances, trial balance only shows or check the ____________ and it does not indicate that no errors were made during recording and posting.
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