A Trial Balance Would Detect Which of the Following Errors

question 10

Multiple Choice

A trial balance would detect which of the following errors?

• A) Failure to record depreciation for the year
• B) A cash purchase of inventory recorded as a debit to Plant and a credit to Accounts payable
• C) A salesman failing to record a cash sale, and retaining the proceeds
• D) An addition error in a ledger account

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Definitions:

Plantwide Factory Overhead Rate

A single overhead absorption rate calculated by dividing total factory overheads by total machine hours or labor hours, applied uniformly across all products and services.

Machine Hours

A measure of the amount of time a machine is operated, used in costing and operational efficiency analysis.

Single Plantwide Factory Overhead Rate

A method of allocating manufacturing overhead costs uniformly across all units produced within a single factory.

Direct Labor Hours

The total hours worked by employees who are directly involved in the production of goods or services.