At Year-End,a Trial Balance Showed Total Credits Exceed Total Debits

question 70

Multiple Choice

At year-end,a trial balance showed total credits exceed total debits by $4,950.This difference could have been caused by:

• A)An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash.
• B)A net income of $4,950.
• C)The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950.
• D)The balance of $5,500 in the Office Equipment account being entered on the trial balance as a debit of $550.
• E)An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable.

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Definitions:

FOH Budget Variance

The difference between the budgeted factory overhead costs and the actual factory overhead incurred during a period.

Variable Manufacturing Overhead

Costs in manufacturing that vary with the level of production output, such as utilities or raw materials, excluding direct labor and materials.

Work in Process Inventories

Inventories that include all partially completed goods or materials that are in the process of being manufactured.

Standard Cost System

An accounting method that applies fixed costs for materials, labor, and overhead to goods produced based on standard prices and usage rates.