If the Trial Balance Does Not Balance, Which of the Following

question 112

Multiple Choice

If the trial balance does not balance, which of the following is NOT a method used to detect the error. Checking to see if the difference is

• A) 10, 100, etc.
• B) equal to the amount of one of the journal entries.
• C) equal to the amount of one of the journal entries when the difference is divided by two.
• D) divisible by 7.

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Definitions:

Residual Income

The net income that exceeds the minimum required return on a company's investments or operations.

Minimum Return on Investment

The least amount of return that an investor is willing to accept for an investment, considering the risk and opportunity cost.

Support Department Cost

Expenses related to departments within a company that do not directly produce goods but support those that do.

Support Department Allocations

The process of distributing overhead costs from service departments to direct production areas, often based on specific allocation bases.