An Addition Error Could Cause the Total Debit and Total

question 115

True/False

An addition error could cause the total debit and total credit columns on the trial balance to show a difference of 100.

---

Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations based on its current earnings.

Price-earnings

A financial ratio that measures the market value of a stock in relation to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Earnings Per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock.

Price-earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.