Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Trial Balance

Financial Accounting

2. Transaction Analysis

Trial Balance

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Multiple Choice

Which of the following statements will NOT result in the trial balance being unequal?

A debit entry is made without a corresponding credit entry.

A transaction is recorded in the wrong account but with equal debit and credit amounts.

A transaction is recorded only on the credit side.

The debit side of an entry is recorded with a different amount than the credit side.

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Verified step by step guidance

Step 1: Understand the purpose of a trial balance. A trial balance is a report that lists all ledger accounts and their balances (both debit and credit) to ensure that the total debits equal the total credits. This is a key step in identifying errors in the accounting process.

Step 2: Analyze the first statement: 'A debit entry is made without a corresponding credit entry.' This violates the double-entry accounting principle, where every debit must have a corresponding credit. Such an error will result in an unequal trial balance.

Step 3: Analyze the second statement: 'A transaction is recorded in the wrong account but with equal debit and credit amounts.' In this case, the total debits and credits remain equal, even though the transaction is misclassified. This type of error will NOT cause the trial balance to be unequal.

Step 4: Analyze the third statement: 'A transaction is recorded only on the credit side.' This is a one-sided entry, which violates the double-entry principle and will result in an unequal trial balance.

Step 5: Analyze the fourth statement: 'The debit side of an entry is recorded with a different amount than the credit side.' This creates an imbalance between debits and credits, leading to an unequal trial balance. Therefore, the correct answer is the second statement, as it does not affect the equality of the trial balance.