Identify the Item Below That Would Cause the Trial Balance

question 208

Multiple Choice

Identify the item below that would cause the trial balance to not balance.

• A) A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash.
• B) The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies Normal 0 false false false EN-IN X-NONE X-NONE and $2,350 credit to Accounts Payable.
• C) A $50 cash receipt for the performance of a service was not recorded at all.
• D) The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200.
• E) The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

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Definitions:

Investments

Assets purchased with the expectation that they will generate income in the future or appreciate in value for future resale.

Operating Cash Flow

The revenue generated by a company through its primary business functions.

Interest Expense

This is the cost incurred by an entity for borrowed funds, which can include the cost of bonds, loans, and lines of credit.

Depreciation

The allocation of the cost of an asset over its useful life, reflecting the loss in value over time.