Trial Balances and Comprehensive Income Flashcards

A report showing all ledger account balances with debit balances in the left-hand column and credit balances in the right-hand column before adjusting entries are posted.

• A debit posted as a credit or vice versa.
• Incorrectly calculated ending balance in accounts.
• Incorrect amounts recorded in the trial balance.
• Debit balance copied into the credit column or vice versa.
• Errors in summing debits or credits.

The change in equity of a business entity during a period from transactions and other events and circumstances from nonowner sources.

• Net income: Excess of revenues and gains over expenses and losses reported on the income statement
• Other comprehensive income: Items not reported on the income statement but recorded in the Accumulated Other Comprehensive Income (AOCI) account

• Credit to revenue/gain: Increases revenues/gains, increases net income, increases equity.
• Credit to expense/loss: Decreases expenses/losses, increases net income, increases equity.
• Debit to revenue/gain: Decreases revenues/gains, decreases net income, decreases equity.
• Debit to expense/loss: Increases expenses/losses, decreases net income, decreases equity.

• Asset accounts: Debit
• Liability accounts: Credit
• Equity accounts: Credit
• Revenue and gain accounts: Credit
• Expense and loss accounts: Debit