Reference no: EM132933634

Problem 1: Still puzzled, the intern asks "Why do none of the amounts in the accounting equation equal the totals on the trial  balance?"

Check all that apply.
A) The accounts with debit balances are not all classified in the same element of the accounting equation. For  example, not all accounts with debit balances are assets.
B) The accounts that make up the total for stockholders' equity have a mix of debit and credit balances.
C) The accounts with credit balances are not all classified in the same element of the accounting equation. For  example, not all accounts with credit balances are liabilities.
D) You point out the total of the assets, liabilities and stockholders' equity is equal to the sum of the debit and credit  totals in the trial balance.
E) This is because the revenue and expense accounts are part of the stockholders' equity element. The accounts with debit balances should be part of the total assets.