Question

Which of the following errors in the journal entry will not be detected by trial balance?

A. Credits are understand and debits are recorded correctly
B. Debits are overstated and the credits are correctly recorded
C. Debits are understated and the credits are overstated by different amounts
D. Both debit and credit parts are overstated by the same amount

Answer 1

D. both debit and credit parts are overstated by the same amounts

Answer 2

Answer:

The correct answer is D. Both debit and credit parts are overstated by the same amount

Explanation:

The trial balance is a list of accounts and their ending balances. Each account will have either a debit or credit balance (but not both). When a trial balance is complete the total of all the debits must equal the total of all the credits. When preparing a trial balance you list out assets, liabilities, capital, withdrawals, revenue, and expenses.

If they are both overstated by the same amount then it will appear that the information is accurate on the Trial Balance. I got this right on the quiz too <3

have a nice day!!