Final answer:
The excess of debits over credits or vice versa in an account- False
Step-by-step explanation:
When there is an excess of debits over credits or vice versa in an account, it indicates an imbalance in the accounting equation. In double-entry accounting, every transaction has an equal debit and credit, ensuring that the accounting equation (Assets = Liabilities + Equity) remains balanced. If debits do not equal credits, it suggests an error in recording transactions. Such discrepancies are usually identified during the reconciliation process, where adjustments are made to ensure the books are in balance.
To determine if an account is balanced, one can compare the total debits and total credits. If they are equal, the account is balanced; if not, there is an imbalance that needs correction. Maintaining balance is fundamental in accounting to ensure accurate financial reporting and adherence to accounting principles.
The equation Debits = Credits signifies balance. If the two sides don't match, errors or omissions may exist, requiring correction for accurate financial records.
Therefore, an excess of debits over credits or vice versa indicates an accounting discrepancy, making the statement false.