Question

When entering a journal entry, what happens if the debits don't equal the credits?

a) QuickBooks prevents you from saving the entry.
b) QuickBooks automatically balances the entry.
c) QuickBooks displays a warning message but allows you to save it.
d) QuickBooks deletes the entry and prompts you to start over.

Answer 1

If the debits don't equal the credits in a journal entry in QuickBooks, a warning message is displayed, but you are still allowed to save it.

Step-by-step explanation:

When entering a journal entry in QuickBooks, if the debits don't equal the credits, QuickBooks displays a warning message but allows you to save it. It is important to ensure that the debits and credits are balanced in a journal entry because it follows the double-entry bookkeeping system, which means that every transaction must have equal debits and credits. QuickBooks will alert you of the imbalance and give you the opportunity to correct it before saving the entry.