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 Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which constitutes how a company finances its overall operations and growth.

Indifference EBIT

Indifference EBIT (Earnings Before Interest and Taxes) is the level of EBIT where a company is indifferent between different financial options or structures, as each would result in the same earnings.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal.

Unlevered Cost of Capital

The cost of capital for a company that has no debt, reflecting the returns required by equity owners alone.