Which of the Following Errors, Each Considered Individually, Would Cause

question 62

Multiple Choice

Which of the following errors, each considered individually, would cause the trial balance to be out of balance?

• A)A payment of $148 to a creditor was posted as a debit to Accounts Payable and a debit of $148 to Cash.
• B)Cash received from a customer on account was posted as a debit of $350 to Cash and a credit of $350 to Accounts Payable.
• C)A payment of $59 for supplies was posted as a debit of $95 to Supplies and a credit of $95 to Cash.
• D)A transaction was not posted.

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Definitions:

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Average Rate of Return

A monetary measurement for assessing an investment's profit efficiency, determined by dividing the yearly average profit by the cost of initial investment.

Cash Payback

A capital budgeting method that estimates the time required for an investment to generate cash flows sufficient to recover its initial cost.

Internal Rate of Return

A financial metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.