Suppose the total of all debits is less than the total of all credits

QUESTION

Suppose the total of all debits is less than the total of all credits in a double-entry bookkeeping journal. What must be the explanation for this?

A) An error has occurred.
B) There has been a profit for the day.
C) There has been a loss for the day.
D) GAAP standards were not followed.
E) Single-entry transactions have been recorded.

ANSWER

Answer: A
Explanation: A) If, in a daily journal, the total of all debits do not equal the total of all credits, an error has occurred.