Which of the Following Errors Would Cause the Balance Sheet

question 214

Multiple Choice

Which of the following errors would cause the Balance Sheet and Statement of Retained Earnings columns of a work sheet to be out of balance?

• A)Entering an asset amount in the Income Statement Debit column.
• B)Entering a liability amount in the Income Statement Credit column.
• C)Entering an expense amount in the Balance Sheet and Statement of Retained Earnings Debit column.
• D)Entering a revenue amount in the Balance Sheet and Statement of Retained Earnings Debit column.
• E)Entering a liability amount in the Balance Sheet and Statement of Retained Earnings Credit column.

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Definitions:

Amortized

The process of gradually writing off the initial cost of an asset over a period according to a fixed plan.

Impairment Loss

The amount by which the carrying value of an asset exceeds its recoverable amount.

Assets

Resources owned or controlled by a business from which future economic benefits are expected.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.