A $200 Credit to Interest Payable Was Instead Recorded in Error

question 23

Multiple Choice

A $200 credit to Interest Payable was instead recorded in error as a $200 credit to Cash in an adjusting entry,which has been posted to the ledger accounts.Which of the following is the result of this error?

• A)The trial balance is out of balance by $200.
• B)Total assets are understated by $200.
• C)Net income is overstated by $200.
• D)Total liabilities are overstated by $200.

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Definitions:

Vaginismus

A condition involving involuntary contraction of the vaginal muscles, causing discomfort, pain, and difficulty with intercourse.

Dysfunction

The impaired or abnormal functioning of a bodily system or organ, often leading to various health issues.

Female Orgasmic Disorder

A dysfunction in which a woman persistently fails to reach orgasm, has very low intensity orgasms, or has very delayed orgasms.

Treatment

The management and care of a patient for the purpose of combating disease or disorder.