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:

Net Income

The final amount of money a company earns, after deducting all its costs including taxes and operational expenses, from its total income.

Accrued Revenue

Revenue earned in one accounting period but not received until a later period, representing money owed to a business for goods or services provided.

Adjusting Journal Entries

Accounting entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Net Income

The total profit of a company after all revenues and gains are added and all expenses and losses are subtracted.