Which of the Following Errors Would Cause the Debit Side

question 18

Multiple Choice

Which of the following errors would cause the debit side of a trial balance to be larger than the credit side?

• A)Revenue earned on account was recorded with a debit to Cash and a credit to Revenue.
• B)Purchase of supplies on account was recorded with a credit to Supplies and a debit to Accounts Payable.
• C)Land purchased with cash was recorded with a debit to the Land account and a credit to Accounts Payable.
• D)None of these answer choices would cause the debit side of the trial balance to be larger than the credit side.

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Definitions:

Security Market Line

A representation of the capital asset pricing model (CAPM), showing the relationship between the expected return of an investment and its risk.

Capital Market Line

A line that depicts the risk-return trade-off for efficient portfolios, showing the relationship between expected return and risk in the capital market.

Regression Techniques

A set of statistical processes for estimating the relationships among variables, commonly used for prediction and forecasting in finance and economics.

Slope Coefficient

A measure that indicates the rate at which a dependent variable changes in relation to an independent variable, often used in linear regression analysis.