After Posting Is Completed, There May Be an Error If

question 174

Multiple Choice

After posting is completed, there may be an error if:

• A) The sum of the supplier account balances does not equal the general ledger Accounts Payable controlling account balance.
• B) The sum of the accounts receivable ledger does not equal the balance in the sales journal.
• C) The sum of the accounts receivable ledger does not equal the balance in the Sales account.
• D) The sum of the supplier account balances does not equal the total in the purchases journal.
• E) The balance in the sales journal does not equal the Accounts Receivable account balance.

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Definitions:

Dividend Payout Ratio

This is a financial ratio that measures the percentage of earnings paid to shareholders in the form of dividends.

Net Income

The total profit or loss of a company after all revenues, costs, expenses, and taxes have been accounted for.

Common Stock

A type of security that represents ownership in a corporation, granting holders voting rights and a share in the company’s profits through dividends.

Return On Total Assets

A profitability ratio measuring net income produced by total assets during a period by comparing net income to the average total assets.