When Listing the Assets in the Trial Balance, the Balance

question 119

Multiple Choice

When listing the assets in the trial balance, the balance for Accounts Receivable was transposed. The correct balance is $2100 and the amount was written as $1200. Is the trial balance out of balance?

• A)No.
• B)Yes, by $1200.
• C)Yes, by $900.
• D)Yes, by $2100.

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Definitions:

Unrealized Gain or Loss-Income

The increase or decrease in the value of an investment that has not yet been sold for a profit or loss.

Other Expenses

Costs incurred by a business that do not fit into primary operational categories, such as administrative or selling expenses.

Unrealized Loss

A decrease in the value of an investment that has not yet been sold and, thus, does not affect realized financial statements.

Available-for-Sale Security

A financial asset that a company intends to sell but not immediately or in the near term, reported at fair value.