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:

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent or salaries.

Variable Cost

Expenses that change in proportion to the production level or the amount of output.

Period Cost

Period cost refers to any cost that is not directly tied to the production of goods and is expensed in the accounting period in which it is incurred, such as selling, general, and administrative expenses.

Product Cost

The total cost incurred to create a product, including direct labor, direct materials, and manufacturing overhead.