In Preparing a Work Sheet an Adjusted Trial Balance Amount

question 34

Multiple Choice

In preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column.The Balance Sheet columns will balance on completing the work sheet but with the wrong net income,if the amount sorted in error is:

• A)An expense amount placed in the Balance Sheet Credit column.
• B)A revenue amount placed in the Balance Sheet Debit column.
• C)A liability amount placed in the Income Statement Credit column.
• D)An asset amount placed in the Balance Sheet Credit column.
• E)A liability amount placed in the Balance Sheet Debit column.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.

Trading Securities

These are debt or equity securities that are purchased primarily for selling in the near term with the intent of generating short-term profits.

Held-to-maturity Securities

Debt securities which a company has the positive intent and ability to hold until maturity.

Debt Securities

Financial instruments representing money borrowed that must be repaid, typically with interest, such as bonds, bills, or notes.