Which of the Following Errors, Each Considered Individually, Would Cause

question 162

Multiple Choice

Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

• A) A transaction was not posted.
• B) A payment of $67 for insurance was posted as a debit of $76 to Prepaid Insurance and a credit of $76 to Cash.
• C) A payment of $4,450 to a creditor was posted as a debit of $4,500 to Accounts Payable and a credit of $450 to Cash.
• D) Cash received from customers on account was posted as a debit of $720 to Cash and a credit of $720 to Accounts Payable.

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Definitions:

Incorporating

The process of legally declaring a business as a corporation, providing it with specific legal rights and protections.

Limited Liability

A legal structure that limits the personal financial responsibility of shareholders, partners, or owners for company debts and obligations.

Common Stock

Equity ownership in a corporation, with voting rights and the potential to receive dividends.

Petroleum

A natural resource that consists of a complex mixture of hydrocarbons and is used primarily as fuel and in the production of chemicals.