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When posting, what should never appear as a running balance in a ledger account?
AA balance of exactly zero
BA negative amount
CA debit balance
DA credit balance
Answer & Solution
Correct answer: B. A negative amount
1. Ledger balances are maintained in either the debit or the credit column.
2. The rule notes no negative amounts should appear in the ledgers.
3. If a calculation would yield a negative, the balance instead moves to the opposite column.
4. Zero, debit, and credit balances are all normal outcomes, ruling out A, C, and D.
5. Therefore a negative amount should never appear.
_Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §1.3.5 "Posting", p.16_
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