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Commerce · Q108

Accounting

Graduate and Post Graduate · Commerce · question 108

Q108

If debit balances = credit balances, trial balance only shows or checks the _________ and it does not indicate that no errors were made during recording and posting.

A.
Arithmetic accuracy
Answer
B.
Errors of commission
C.
Omissions of economic events
D.
Understatements of balances

Answer: Option A

Solution

Answer: Option A
Solution:
If debit balances = credit balances, trial balance only shows or checks the Arithmetic accuracy and it does not indicate that no errors were made during recording and posting.