Identify the Item Below That Would Cause the Trial Balance

question 208

Multiple Choice

Identify the item below that would cause the trial balance to 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 Normal 0 false false false EN-IN X-NONE X-NONE and $2,350 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:

Standard Variable Overhead Rate

is a predetermined rate used to allocate variable overhead costs to each unit of production based on a particular activity, such as labor hours.

Ideal Standards

Standards that assume perfect operating conditions with no inefficiencies, waste, or delays, used for benchmarking or motivating improvement.

Forecasting

The process of making predictions about future events or trends based on historical data and analysis.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.