Which of the Following Errors Would Cause the Trial Balance

question 92

Multiple Choice

Which of the following errors would cause the trial balance to be out of balance?

• A) The payment of utilities expense was recorded as a debit to Rent Expense for $97 and a credit to Cash for $97.
• B) The payment of an account payable for $100 was recorded as a debit to Cash, $100, and a credit to Accounts Payable, $100.
• C) The collection of an account was not recorded.
• D) The payment of an account payable for $700 was recorded as a debit to Accounts Payable for $700 and a credit to Cash for $7,000.

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Definitions:

OECD

The Organisation for Economic Co-operation and Development, an international organization that works to build better policies for better lives among its member countries.

Tax Revenue

The financial resources acquired by governments via taxation.

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay to their staff.

Personal Income Taxes

Taxes imposed on individuals or households based on the income they earn over a certain period, often progressive in nature.