What does a trial balance with a debit balance indicate?
Practice Questions
1 question
Q1
What does a trial balance with a debit balance indicate?
More debits than credits
More credits than debits
Balanced accounts
An error in accounting
A trial balance with a debit balance indicates that there are more debits than credits, which may suggest an error in the accounting records.
Questions & Step-by-step Solutions
1 item
Q
Q: What does a trial balance with a debit balance indicate?
Solution: A trial balance with a debit balance indicates that there are more debits than credits, which may suggest an error in the accounting records.
Steps: 5
Step 1: Understand what a trial balance is. A trial balance is a list of all the accounts in the accounting system and their balances.
Step 2: Know that accounts can have either a debit balance or a credit balance. Debits and credits are two sides of accounting.
Step 3: A debit balance means that the total amount of debits in the accounts is greater than the total amount of credits.
Step 4: If the trial balance shows a debit balance, it indicates that there are more debits than credits overall.
Step 5: This situation may suggest that there is an error in the accounting records, as debits and credits should normally balance out.
