Answer true or false to the following statements:

  • For the trial balance to balance the debits must equal the credits. 
  • The normal balance of all liability accounts is a debit. 
  • The normal balance in an asset account is a debit. 
  • The normal balance of a revenue account is a credit. 
  • If the trial balance balances, it proves that all of the entries have been made correctly. 
  • If an entry has been posted to the accounts twice, the trial balance will still balance.
  • Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts. 
  • Transactions are recorded in alphabetical order in a journal. 
  • The chart of accounts is list of all the accounts in a company. 
  • A chart of accounts should be arranged in alphabetical order for easier reference. 
  • A trial balance does not prove that all transactions have been recorded or that the ledger is correct. 
  • Errors in a trial balance may only be caused by an error in posting the journal entries to the accounts.

Expert Answers

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True. The trial balance uses the double entry system, which means that debits have to balance with the credits.

False. Liability accounts have credit balances.



False. The trial balance can still balance even with errors. For example, someone may mistakenly put a credit entry as a debit entry and vice versa.

False. If a transaction has been recorded twice the trial balance is not guaranteed to balance; it can go either way.

False. The transactions are recorded in the journal first.

False. The old rule for journal entries is to record the debits before the credits.


False. The system uses a numerical system for easy identification.


False. Sometimes the error may be caused by failure to record a certain transaction. You don't always have to post a transaction to recognize the error.

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  • True
  • False. Liability accounts, like revenue and equity are reflected as credits.
  • True
  • True
  • False. Wrong postings, transposed credits and debits, transposed numbers themselves or duplicated or omitted postings could still need addressing.
  • True
  • False. As transactions occur, they are analysed to establish which account will be affected and how they will be affected.
  • False. Usually in chronological (date) order
  • True
  • False. It can be arranged in any order as preferred. A numeric order is sometimes preferred in computerized systems.
  • True
  • False. (See Q 12. Other errors can occur such as entries which have not been made at all, entries to incorrect accounts, debits reflected as credits and credits reflected as debits, numbers that have been transposed, and so on.)
Approved by eNotes Editorial Team
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