oboloo Glossary

Errors That Affect A Trial Balance

oboloo Glossary

Errors That Affect A Trial Balance

Errors that affect a trial balance are mistakes or omissions in the accounting records of a business that cause the total amount reported on the trial balance to be inaccurate. These errors can have far-reaching implications for the Financial Statements and can lead to serious financial loss if they go undetected. Errors that affect a trial balance may include incorrect entries, incomplete journal entries, incorrect classifications, transposition of digits and miscalculations. It is important for businesses to carefully review their trial balance regularly to ensure it is accurate, in order to prevent any potential financial losses due to errors.