When Jim Was Preparing the Trial Balance, He Accidentally Recorded

question 39

Multiple Choice

When Jim was preparing the trial balance, he accidentally recorded a $550 payment of accounts payable twice. By how much will this cause the trial balance columns to differ?

• A) $0
• B) $275
• C) $550
• D) $1,100

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Definitions:

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Fizzle & Sizzle

An informal term indicating the contrasting outcomes of events or products; "fizzle" for failing and "sizzle" for succeeding amazingly.

Implicit Cost

The opportunity cost associated with a firm's use of resources that it already owns, representing the income the firm foregoes by using these resources in its current capacity.

Total Revenue

The total amount of money received by a company from sales of its products or services, before any expenses are subtracted.