At Year-End,a Trial Balance Showed Total Credits Exceed Total Debits

question 70

Multiple Choice

At year-end,a trial balance showed total credits exceed total debits by $4,950.This difference could have been caused by:

• A)An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash.
• B)A net income of $4,950.
• C)The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950.
• D)The balance of $5,500 in the Office Equipment account being entered on the trial balance as a debit of $550.
• E)An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable.

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Definitions:

Judgment

The official decision or conclusion given by a court following a legal proceeding.

Real Defense

A genuine, legally recognized defense that can be used to nullify a claim or charge.

Holder in Due Course

A person or entity that holds a negotiable instrument in good faith, for value, and without notice of any defects, obtaining certain rights exceeding those of the original parties.

15 Years Old

Refers to an individual or object that has reached or exists for a duration of fifteen years.