If, in Preparing a Work Sheet, an Adjusted Trial Balance

question 62

Multiple Choice

If, in preparing a work sheet, an adjusted trial balance amount is sorted to the wrong work sheet column, the Balance Sheet columns will balance on completing the work sheet, but with the wrong profit, if the amount sorted in error is:

• A)A liability amount entered in the Income Statement Credit column.
• B)A revenue amount entered in the Balance Sheet Debit column.
• C)An asset amount entered in the Balance Sheet Credit column.
• D)A liability amount entered in the Balance Sheet Debit column.
• E)An expense amount entered in the Balance Sheet Credit column.

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Definitions:

Categorize Items

The process of organizing goods or services into groups or categories based on their characteristics or functions.

Inventory Items

Goods and materials that a business holds for the ultimate goal of resale or production.

Non-inventory Items

Items that a business sells but does not maintain in physical inventory, often including services and digital goods.

Services

Intangible products offered by businesses, such as consulting, repairs, or entertainment.