If a Transposition Error Has Occurred When Recording a Transaction

question 156

Multiple Choice

If a transposition error has occurred when recording a transaction, then the out-of-balance amount will be evenly divisible by:

• A) 11
• B) 9
• C) 2
• D) 5

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Definitions:

Compounded Quarterly

Refers to the process of calculating and adding interest to the principal sum every quarter of a year.

Mortgage

A loan used to purchase a piece of property, where the property itself serves as collateral until the loan is repaid.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Payments

Regular amounts of money paid by one party to another, often in exchange for goods, services, or to fulfill a legal obligation.