What are total debits and credits also known as in accounting?

Total debits and credits in accounting are commonly referred to as a trial balance. A trial balance is a financial report that lists all the balances of a company's accounts at a specific point in time, ensuring that total debits equal total credits. This is crucial for maintaining the double-entry accounting system, which requires that for every debit entry made, there is an equal and opposite credit entry.

Hash totals, on the other hand, refer to the summation of numbers that do not have inherent financial meaning, often used in data reconciliation processes rather than to check for equal debits and credits. Error reports are constructed to identify and indicate mistakes within accounting records, not to summarize accounting balances. Accounting statements, such as income statements or balance sheets, present financial performance and position but do not directly reflect the equality of total debits and credits.

Thus, recognizing that total debits and credits are foundational to the trial balance helps clarify their purpose and importance in verifying the accuracy of the accounting records.