Which of the Following Errors, Each Considered Individually, Would Cause

question 162

Multiple Choice

Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

• A) A transaction was not posted.
• B) A payment of $67 for insurance was posted as a debit of $76 to Prepaid Insurance and a credit of $76 to Cash.
• C) A payment of $4,450 to a creditor was posted as a debit of $4,500 to Accounts Payable and a credit of $450 to Cash.
• D) Cash received from customers on account was posted as a debit of $720 to Cash and a credit of $720 to Accounts Payable.

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Definitions:

Paper Trail

A series of documents or records that provide evidence of a person's or organization's transactions, actions, or history.

Expected Returns

The anticipated amount of profit or loss an investment is predicted to generate based on historical or projected performance.

Securities

Securities that signify ownership in a corporation that's publicly traded (such as shares), a debt obligation to a government entity or a company (through bonds), or entitlements to ownership through options.

Prospectus

A formal document that companies use to describe the securities they are offering for participants and investors.