Which of the Following Errors Would Cause the Debit Side

question 18

Multiple Choice

Which of the following errors would cause the debit side of a trial balance to be larger than the credit side?

• A)Revenue earned on account was recorded with a debit to Cash and a credit to Revenue.
• B)Purchase of supplies on account was recorded with a credit to Supplies and a debit to Accounts Payable.
• C)Land purchased with cash was recorded with a debit to the Land account and a credit to Accounts Payable.
• D)None of these answer choices would cause the debit side of the trial balance to be larger than the credit side.

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Definitions:

Capitalization

The total value of all a company's outstanding shares of stock, representing the company's market value.

Reduce Uncertainty

The process of implementing strategies or actions to decrease the level of uncertainty or unpredictability associated with decision-making or future outcomes.

Lease Contract

A legal agreement between two parties where one party (lessor) allows another (lessee) to use an asset for a specific period in exchange for payment.