Of the Following Errors, Which One by Itself Will Cause

question 119

Multiple Choice

Of the following errors, which one by itself will cause the trial balance to be out of balance?

• A) A $200 salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense
• B) A $100 receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable
• C) A $75 receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash
• D) A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash
• E) All of these errors will cause the trial balance to be out of balance.

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Definitions:

Marketable Securities

Financial instruments that can be easily converted to cash without losing much value.

Long-term Debt

Borrowings that are due for repayment after more than one year, used to finance a company's operations and growth.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, typically used by businesses to manage liquidity and ensure they can meet their cash requirements.

Short-term Financial Management

The practice of managing a company's financial activities that are expected to be resolved within a year.