A Company Recorded a Cash Payment Incorrectly

question 164

Multiple Choice

A company recorded a cash payment incorrectly.They debited Accounts Receivable for $1,000 and credited Cash for $1,000.The correct entry would debit Accounts Payable for $1,000 and credit Cash for $1,000.Is the trial balance out of balance?

• A)No.
• B)Yes,by $1,000.
• C)Yes,by $2,000.
• D)Yes,by an indeterminate amount.

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Definitions:

Property Rights

The legal rights to use, control, and dispose of property, whether personal or real estate.

Supreme Court

The highest federal court in the United States, which has ultimate appellate jurisdiction over all federal and state court cases involving issues of federal law, and holds the power of judicial review.

Union Actions

Various activities undertaken by labor unions, such as strikes or negotiations, to advocate for workers' rights and interests.

Employment Law

A branch of law that governs the rights and duties between employers and workers and includes regulations concerning labor relations, wages, and working conditions.