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:

Increasing

Becoming greater or larger in quantity, size, intensity, or degree.

Standard Deviation

A figure that gauges the scatter of data points around the mean value, demonstrating the extent of dispersion.

Test Statistic

A standardized value used in statistical hypothesis testing to determine whether to reject the null hypothesis.

Null Hypotheses

A statement used in statistical testing which indicates that no significant difference or effect is expected.