When an Incorrect Total Is Carried from the Journal to the Ledger

question 148

Multiple Choice

When an incorrect total is carried from the journal to the ledger or from ledger to the financial statements, this method is called:

• A) Forced Balance
• B) Out-of-balance
• C) False balance
• D) None of all

---

Definitions:

Net Present Value

A financial measure that computes the disparity between the present value of cash coming in and going out over a certain period.

Flotation Cost

The total costs incurred by a company in issuing new securities, including underwriting, legal, registration, and distribution fees.

External Financing

denotes the process of obtaining capital from outside sources, like banks or investors, to fund operations, expansions, or projects.