Which of the Following Would Cause a Trial Balance to Be

question 169

Multiple Choice

Which of the following would cause a trial balance to be out of balance?

• A)A transaction was recorded twice.
• B)A transaction was not recorded.
• C)A transaction was posted to the wrong accounts.
• D)Only the credit portion of a transaction was recorded.

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Definitions:

Capital Budgeting Technique

Methods used by companies to evaluate and select investments in long-term assets based on their potential to generate cash flows in the future.

Profitability Index

A financial metric used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment.

Payback Period

The duration required for an investment to generate cash flows sufficient to recover its initial cost.

AAR

Average Annual Return, which measures the average return generated by an investment per year over a specified period.