A $200 Payment on a Notes Payable Posted as a Debit

question 119

Multiple Choice

A $200 payment on a notes payable posted as a debit to notes payable and a debit to cash. This error will cause:

• A)the trial balance to be in balance.
• B)the sum of the credits to exceed the sum of the debits by $400.
• C)the sum of the debits to exceed the sum of the credits by $400.
• D)the sum of the debits to exceed the sum of the credits by $200.

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Definitions:

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in a profit of zero.

Unit Selling Price

The price for which a single unit of a product is sold, not including any additional fees or charges.

Fixed Costs

Expenses that do not change in response to the level of goods or services produced by the business, such as rent or salaries.

Operating Income

Represents the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold from gross revenue.