A $50 Collection on Account Was Posted as a Debit

question 156

Multiple Choice

A $50 collection on account was posted as a debit to cash and a debit to accounts receivable. 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 $100.
• C)the sum of the debits to exceed the sum of the credits by $50.
• D)the sum of the debits to exceed the sum of the credits by $100.

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Definitions:

Reportable Segment

An operating segment of a business that requires separate disclosure in the company's financial reporting due to its significant size, profitability, or importance.

Operating Segments

Components of an enterprise about which separate financial information is available and evaluated regularly by the chief operating decision maker in deciding how to allocate resources.

Profit or Loss Test

The profit or loss test is a method used to determine if a business activity or transaction is able to generate a profit or results in a loss.

Operating Segments

Business units of a corporation that generate revenues and incur expenses, and for which separate financial information is available and evaluated regularly by the chief decision maker.