A trial balance proves that the accounts are in balance. Does a balanced trial balance also prove that all the transactions are correctly analyzed and recorded? Why or why not?
The trial balance proves whether the accounts are in balance. In balance means that the total of all debits recorded equals the total of all credits recorded. But the trial balance does not prove that the transactions were analyzed correctly or recorded in the proper accounts. For example, the trial balance does not show that a debit should have been made in Office Supplies rather than in Office Equipment. And the trial balance does not detect whether transactions have been omitted, because equal debits and credits will have been omitted. Also, if an error of the same amount is made in both a debit and a credit, it will not be evident in the trial balance. The trial balance proves only that the debits and credits in the accounts are in balance.
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