A Trial Balance Would Detect Which of the Following Errors

question 38

Multiple Choice

A trial balance would detect which of the following errors?

• A) failure to record depreciation for the year
• B) a credit purchase recorded in accounts payable account as $927 instead of $972
• C) a cash purchase of inventory recorded as a debit to plant and a credit to accounts payable
• D) a salesman failing to record a cash sale,and retaining the proceeds.

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Definitions:

Assets

Economic resources owned by a business or individual that have value and can be used to meet debts, commitments, or legacies.

Debt Ratio

A financial ratio that measures the extent of a company’s leverage by comparing total liabilities to total assets.

Borrowed Funds

Money obtained through loans or credit arrangements, which is expected to be repaid with interest.

Total Assets

The sum of all current and non-current assets owned by a company, indicating the company's overall value.