Which of the Following Recording Errors Will Be Revealed by the Unadjusted

question 77

Multiple Choice

Which of the following recording errors will be revealed by the unadjusted trial balance?

• A)incorrectly posting a debit for Supplies Expense to Salaries Expense
• B)inadvertently omitting an entry recording the purchase of small tools from posting
• C)posting a journal entry to record rent expense twice
• D)posting a $50,000 entry to Accounts Receivable as $5,000 while correctly recording the corresponding revenue correctly

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Definitions:

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, modified to account for changes in cash flow schedules.

Basis Points

One basis point is equal to 1/100th of 1%, used primarily to denote the change in interest rates, equity indexes, and the yield of fixed-income securities.

Price Decline

A decrease in the market price of an asset or security.

Duration

A measure of the sensitivity of the price of a bond or other fixed-income investment to a change in interest rates, often expressed in years.