A Trial Balance Would Only Help in Detecting Which One

question 65

Multiple Choice

A trial balance would only help in detecting which one of the following errors?

• A)A transaction that is not journalized
• B)A journal entry that is posted twice
• C)Offsetting errors made in recording the transaction
• D)A transposition error when transferring the debit side of journal entry to the ledger

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Definitions:

Preferred Stock

A class of stock that carries with it the right to receive payment of dividends and/or the distribution of assets on the dissolution of the corporation before other classes of stock receive their payments.

Dividends

Net profits, or surplus, set aside for shareholders.

Dissolution

A change in the relation of partners caused by any partner ceasing to be associated in the carrying on of the business.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.