Asked by Kayla Driffin on May 20, 2024
Verified
A company's post-closing trial balance has total debits of $40,350 and total credits of $40,650. Accordingly, the company should review for errors in the closing process.
Total Credits
In accounting, the sum of all credit entries recorded, representing increases in liabilities, revenue, or equity.
- Detect and rectify inaccuracies within the closing procedures and subsequent post-closing trial balance.
Verified Answer
CC
Carlos CasteloMay 21, 2024
Final Answer :
True
Explanation :
The total debit and credit balances should be equal after the closing process, and they are not in this case. Therefore, there may be errors in the closing process that need to be reviewed.
Learning Objectives
- Detect and rectify inaccuracies within the closing procedures and subsequent post-closing trial balance.
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