If Total Debits Are Not Equal to Total Credits in an Adjusted

question 112

Multiple Choice

If total debits are not equal to total credits in an adjusted trial balance, which of the following errors may have occurred?

• A) Posting Wage Expense to Administrative Expenses.
• B) Debiting Interest Payable instead of debiting Interest Expense.
• C) Debiting Notes Payable instead of debiting Interest Expense.
• D) Posting a credit to Wages Payable as a debit.

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Definitions:

Current Assets

Short-term assets including cash, inventory, and receivables that are anticipated to be used or liquidated within one business cycle.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Current Obligations

Short-term financial liabilities or debts that are due within one year or within the normal operating cycle of a business.

Firm's Operations

The day-to-day activities involved in the running of a business for the purpose of producing value for the stakeholders.