Which One of the Following Errors Would Cause a Company's

question 123

Multiple Choice

Which one of the following errors would cause a company's unadjusted trial balance to be out of balance?

• A)Overstating an asset balance by $100 and a revenue balance by the same amount.
• B)Failure to post the debit portion of a journal entry to the proper account (recorded, for example, as a credit to revenue rather than as a debit to an expense account).
• C)Recording a $5,000 revenue transaction by crediting the accounts receivable account and debiting the revenue account.
• D)Recording $1,000 cash collected from a customer as a debit to the cash account and a debit to the accounts receivable account.

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Definitions:

Violation

An act that breaks or disobeys the rules, laws, or agreements, often leading to legal consequences.

Restraint Of Trade

Any activity or agreement that restricts competition or interferes with free trade in the marketplace.

Sherman Act

A foundational United States antitrust law aiming to prohibit monopolistic practices and promote competition.

Sherman Act

An antitrust law passed by the United States Congress in 1890 that prohibits monopolistic practices and promotes competition by making it illegal to establish trusts that interfere with free trade.