The proof of equality of debits and credits.Select one:a.Accounting Equationb.Trial Balancec.Product costsd.Posting
Question
The proof of equality of debits and credits.
Select one:
- a. Accounting Equation
- b. Trial Balance
- c. Product costs
- d. Posting
Solution
The proof of equality of debits and credits in accounting is provided by the Trial Balance.
Here's a step-by-step explanation:
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Record Transactions: The first step in any accounting process is to record all financial transactions during a specific period. This includes all purchases, sales, received and paid amounts.
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Debit and Credit Entries: Each transaction is recorded in two accounts, as a debit in one and a credit in another. This is known as double-entry bookkeeping. The total amount of debits should always equal the total amount of credits.
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Prepare Trial Balance: After all transactions have been recorded, a trial balance
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