What is the effect on the trial balance if an expense of $1,000 is recorded but

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Question: What is the effect on the trial balance if an expense of $1,000 is recorded but not posted to the trial balance?

Options:

Correct Answer: Increase total debits

Solution:

Not posting the expense means total debits will be understated by $1,000, affecting the balance.

What is the effect on the trial balance if an expense of $1,000 is recorded but not posted to the trial balance?

What is the effect on the trial balance if an expense of $1,000 is recorded but not posted to the trial balance?

Step 1: Understand what a trial balance is. It is a list of all accounts and their balances in the accounting system.
Step 2: Know that expenses are recorded as debits in accounting.
Step 3: When an expense of $1,000 is recorded, it should increase the total debits by $1,000.
Step 4: If this expense is not posted to the trial balance, it means the total debits will not reflect this $1,000 increase.
Step 5: As a result, the total debits in the trial balance will be $1,000 less than they should be.
Step 6: This creates an imbalance in the trial balance, as the total debits will not equal the total credits.

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