Financial Accounting Question: A company's trial balance shows total debits of $50,000 and total credits of $48,000. In this scenario, what does the trial balance indicate, and how should the company proceed? A) The trial balance is balanced; no further action is required. B) There is a $2,000 credit balance error, and the company should locate the missing debits. C) There is a $2,000 debit balance error, and the company should locate the missing credits. D) It is acceptable for debits and credits to differ, so no action is needed.

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter2: Analyzing Transactions
Section: Chapter Questions
Problem 5PA: The Colby Group has the following unadjusted trial balance as of August 31, 2019: The debit and...
icon
Related questions
Question

Want Answer

Financial Accounting
Question: A company's trial balance shows total debits of $50,000 and total credits of
$48,000. In this scenario, what does the trial balance indicate, and how should the company
proceed?
A) The trial balance is balanced; no further action is required.
B) There is a $2,000 credit balance error, and the company should locate the missing
debits.
C) There is a $2,000 debit balance error, and the company should locate the missing
credits.
D) It is acceptable for debits and credits to differ, so no action is needed.
Transcribed Image Text:Financial Accounting Question: A company's trial balance shows total debits of $50,000 and total credits of $48,000. In this scenario, what does the trial balance indicate, and how should the company proceed? A) The trial balance is balanced; no further action is required. B) There is a $2,000 credit balance error, and the company should locate the missing debits. C) There is a $2,000 debit balance error, and the company should locate the missing credits. D) It is acceptable for debits and credits to differ, so no action is needed.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning