The Following Errors Were Made in Preparing a Trial Balance

question 63

Multiple Choice

The following errors were made in preparing a trial balance: the $1,350 balance of Inventory was omitted;the $450 balance of Prepaid Insurance was listed as a credit;and the $300 balance of Salaries Expense was listed as Utilities Expense.The debit and credit totals of the trial balance would differ by

• A) $1,350.
• B) $1,800.
• C) $2,100.
• D) $2,250.

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Definitions:

Expected Rate

An estimated percentage or amount, often used in financial projections and calculations like the return on an investment or growth.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Debentures

Long-term debt instruments issued by corporations to borrow money, often secured only by the general creditworthiness of the issuer.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized by the lender if the borrower fails to repay the loan.