When the Trial Balance Totals Are Not Equal, the Error

question 94

Multiple Choice

When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by:

• A)9
• B)5
• C)3
• D)2

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Definitions:

Required Rate of Return

The minimum return an investor expects to receive on an investment to compensate for its risk.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

Working Capital

The distinction between a corporation's short-term assets and liabilities, showing the available capital for operational purposes.

Fast-Food Chain

A series of restaurants serving food quickly and standardized in method and by the same brand name.