Identify the Item Below That Would Cause the Trial Balance

question 228

Multiple Choice

Identify the item below that would cause the trial balance to not balance.

• A)A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash.
• B)The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and $2,350 credit to Accounts Payable.
• C)A $50 cash receipt for the performance of a service was not recorded at all.
• D)The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200.
• E)The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

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Definitions:

Computer System

A combination of hardware, software, and peripherals working together to execute specific tasks or processes.

Bond Indenture

A legal contract outlining the terms and conditions between bond issuers and bondholders, including information such as interest rates and maturity dates.

Debenture Bonds

Financial securities issued by a company that are backed only by the issuer's creditworthiness and general reputation, not by physical assets.

Effective-Interest Method

A method of computing the amortized cost of a bond and of allocating interest expense over its relevant period.