Of the Following Errors, Which One by Itself Will Cause

question 2

Multiple Choice

Of the following errors, which one by itself will cause the trial balance to be out of balance?

• A)A $75 receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash.
• B)A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash.
• C)A $200 salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense.
• D)A $100 receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable.
• E)All of these errors will cause the trial balance to be out of balance.

---

Definitions:

Expiration Date

The date on which an option, futures contract, or insurance policy loses its validity or effect.

Exchange Rate

A financial metric used to determine how much one currency is worth in terms of another for trade and financial transactions.

Unbiased Forward Rates

Future rates of interest inferred from current bond prices, assuming no arbitrage opportunities.

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date, used in derivatives markets.