Which of the Following Is an Example of an Error

question 7

Multiple Choice

Which of the following is an example of an error that would cause the trial balance to be out of balance?

• A)A journal entry was posted as a debit to Cash for $525 and a credit to Accounts Receivable for $552.
• B)A journal entry was posted as a debit to Cash and a credit to Sales Revenue when the company received a $400 payment from a customer on account.
• C)A purchase of supplies on account for $100 was posted as a debit to supplies for $10 and a credit to accounts payable for $10.
• D)A $350 transaction was not recorded at all.

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Definitions:

Regulation Z

A federal law that provides protection for consumers in credit transactions and is part of the Truth in Lending Act.

Truth-In-Lending Act

A federal law designed to promote informed use of consumer credit by requiring disclosures about terms and costs.

Retail Installment Sale

A transaction where the buyer pays for goods in regular installments while the seller retains ownership until the full price has been paid.

Food And Drugs

Pertains to the regulation and oversight of the production, distribution, and safety of food products and pharmaceuticals.