In Which of the Following Situations Would the Trial Balance

question 106

Multiple Choice

In which of the following situations would the trial balance not balance?

• A) A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash.
• B) The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable.
• C) A $50 cash receipt for the performance of a service was not recorded at all.
• D) The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200.
• E) The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

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Definitions:

Opportunity Costs

The value of the best alternative foregone when a decision is made to pursue a particular action, essentially the cost of choosing one option over another.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production, instead of earning income elsewhere.

Explicit Costs

Direct, out-of-pocket payments made for the operation of a business, such as wages, rent, and materials.