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The difference between the total debits and credits to an account is called a ________?

1) trial balance
2) balance
3) ruling
4) footing

1 Answer

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Final answer:

The difference between the total debits and credits to an account is called a balance, reflecting the accounting equation on a balance sheet, which is distinct from terms like trial balance, ruling, and footing in accounting.

Step-by-step explanation:

The difference between the total debits and credits to an account is called a balance. This concept is critical in double-entry accounting, where each financial transaction affects at least two accounts, one with a debit entry and one with a credit entry. To ensure that accounts are properly managed, the sums of the debits and credits must be calculated. If the debits exceed credits, the account has a debit balance; if the credits exceed debits, the account has a credit balance. The balance sheet is a financial statement that presents the balances of an entity's assets, liabilities, and owner's equity at a particular point in time, reflecting the accounting equation: Assets = Liabilities + Equity. It's worth noting that other terms such as trial balance, ruling, and footing have different meanings in the context of accounting.

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