Which of the Following Is an Example of an Error

question 78

Multiple Choice

Which of the following is an example of an error that would not cause the trial balance to be out of balance?

• A)A journal entry was posted as a debit to Cash for $525 and credited to Accounts Receivable for $552.
• B)A journal entry was posted as a debit to Cash and a credit to Sales Revenue when the company received a customer payment on account.
• C)A journal entry was posted as a debit to Wages Expense and a debit to Wages Payable.
• D)All of the choices errors would cause the trial balance to be out of balance.

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Definitions:

Noncash Investing

Investing activities that do not involve cash transactions, often involving the trade of assets or issuance of equity or debt.

Net Cash Flows

The difference between a company's cash inflows and outflows in a given period.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing stocks or bonds and paying dividends.

Treasury Stock

Shares that were previously issued and outstanding but have been repurchased by the issuing company, reducing shareholders' equity.