If the Two Totals of a Trial Balance Are Not

question 6

Multiple Choice

If the two totals of a trial balance are not equal, it could be due to:

• A) failure to record a transaction.
• B) recording the same erroneous amount for both the debit and the credit parts of a transaction.
• C) an error in determining the account balances, such as an incorrectly computed balance.
• D) a transaction was not posted.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, representing the portion of sales that contributes to covering fixed costs.

Production Constraint

A limit to the amount or volume of production, often caused by the availability of resources, technology, or market demand.

Machine Hours

A measure of the amount of time a machine is operated in the production process.

Avoidable Costs

Avoidable Costs are expenses that can be eliminated if a particular decision is made, such as discontinuing a product or service.