In Preparing a Work Sheet an Adjusted Trial Balance Amount

question 34

Multiple Choice

In preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column.The Balance Sheet columns will balance on completing the work sheet but with the wrong net income,if the amount sorted in error is:

• A)An expense amount placed in the Balance Sheet Credit column.
• B)A revenue amount placed in the Balance Sheet Debit column.
• C)A liability amount placed in the Income Statement Credit column.
• D)An asset amount placed in the Balance Sheet Credit column.
• E)A liability amount placed in the Balance Sheet Debit column.

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Definitions:

Registered Bonds

Registered bonds are securities that are recorded in the name of the holder on the issuing company's books, ensuring that interest payments are made to the registered owner.

Finance Leases

Leasing agreements that transfer substantially all risks and rewards of ownership of the asset from the lessor to the lessee.

Contractual Agreement

A legally binding contract specifying the terms and conditions under which parties agree to perform certain actions.

Note Principal

The original amount of money borrowed or the amount still owed on a loan, separate from interest.