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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
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Solution

The proof of equality of debits and credits in accounting is provided by the Trial Balance.

Here's a step-by-step explanation:

  1. 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.

  2. 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.

  3. Prepare Trial Balance: After all transactions have been recorded, a trial balance

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