Which of the Following Is an Example of an Error

question 27

Multiple Choice

Which of the following is an example of an error that would cause the trial balance to be out of balance?

• A) A journal entry was posted as a debit to Cash for $525 and credited to Accounts Receivable for $552.
• B) A journal entry was posted as a debit to Cash and a credit to Sales Revenue when the company received a customer payment on account.
• C) A journal entry was posted as a credit to Wages Expense and a debit to Wages Payable.
• D) A transaction was not recorded at all.

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Definitions:

Overhead

The general operating costs not directly tied to production, including administrative and facility expenses.

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly attributed to the product.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, calculated before the production period begins based on estimated costs.

Direct Labour Hours

The total hours worked by employees directly involved in the manufacturing process, affecting the overall production cost.