AC201 week 1 discussion

In the double entry accounting system a trial balance

This preview shows page 2 out of 2 pages.

Why is a trial balance prepared? In the double-entry accounting system, a trial balance is prepared as a crosscheck to identify any errors  that may have occurred.  The trial balance is considered balanced when the total debts equal the total  credits; it is at that point that the final product is considered correct as the ledgers should have no  mistakes.  CH2Q4: Define assets, liabilities, equity and net assets. Assets:  Properties or economic resources owned by the business; more precisely, resources with an  ability to provide future benefits to the business. Liabilities:  The debts or obligations of a business; claims by others that will reduce the future assets of a  business or require future services or products. Equity:  The owner's claim on the assets of a business; more precisely, the assets of an entity that remain  after deducting its liabilities; also called net assets. Net Assets:  Assets minus liabilities; another name for equity.
Image of page 2

{[ snackBarMessage ]}

Get FREE access by uploading your study materials

Upload your study materials now and get free access to over 25 million documents.

Upload now for FREE access Or pay now for instant access
Christopher Reinemann
"Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

Ask a question for free

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern