Which of the Following Transactions Would Cause the Trial Balance

question 71

Multiple Choice

Which of the following transactions would cause the trial balance to be out of balance?

• A) A debit to Cash and a debit to Equipment for the same amount
• B) A credit to Cash and a debit to Supplies for the same amount
• C) A debit to Accounts Receivable and a credit to Accounting Fees for the same amount
• D) All of these answers are correct.

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Definitions:

Depreciation Expense

The allocated amount of an asset's cost that is written off as an expense over its useful life, reflecting the consumption of the asset.

Residual Value

The estimated amount that an asset will be worth at the end of its useful life.

Second-Hand Machine

Pertains to machinery that has been previously owned and used, often sold at a lower price compared to new equipment.

Productive Use

Refers to the use of assets or resources in a manner that generates income or value.