Question: What is the effect of an error in the journal entry on the trial balance?

Options:

1. It will always cause the trial balance to be out of balance
2. It may or may not cause the trial balance to be out of balance
3. It will not affect the trial balance
4. It will only affect the income statement

Correct Answer: It may or may not cause the trial balance to be out of balance

Solution:

An error in the journal entry may or may not cause the trial balance to be out of balance, depending on whether the error affects the equality of debits and credits.