The mechanics of accounting involve analyzing the effect on the accounting equation of financial transactions. Knowing how transactions affect the accounting equation allows you to consider and account for all the ramifications of sometimes complicated transactions.

• What is the trial balance and how is it created?
• What is the purpose of the trial balance?
• If a trial balance balances, would that guarantee that the trial balance is correct?
• What possible errors could happen and still allow the trial balance to balance?

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The Trial Balance Ensuring Balance Before Diving Deeper Youre absolutely right about the importance of understanding the accounting equation and its r... View the full answer