Question

When trying to find errors in a trial balance that does not balance, the first step should be to.. a. verify that ledger account balances were transferred correctly to the trial balance b. review journal entries for unequal debits and credits c. check that each account balance is in the correct debit or credit column in the trial balance d. verify that journal entries were posted correctly

Answer 1

The first step in finding errors in a trial balance that does not balance is to verify that ledger account balances were transferred correctly to the trial balance.

Step-by-step explanation:

When trying to find errors in a trial balance that does not balance, the first step should be to verify that ledger account balances were transferred correctly to the trial balance. This involves comparing the balances in the ledger accounts with the corresponding balances in the trial balance. If there are discrepancies, it indicates that the account balances were not transferred correctly.

For example, if an account has a debit balance in the ledger but is mistakenly entered as a credit balance in the trial balance, it will cause the trial balance to not balance.

Therefore, option a. verify that ledger account balances were transferred correctly to the trial balance is the correct answer.