If the Bookkeeper Forgot to Record a Credit to Accounts

question 23

Multiple Choice

If the bookkeeper forgot to record a credit to accounts receivable:

• A) the trial balance would still balance.
• B) debits would exceed credits on the trial balance.
• C) credits would exceed debits on the trial balance.
• D) total debits and total credits would both be incorrect on the trial balance.

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Definitions:

Cash Interest Payment

The actual cash paid by a borrower to a lender or bondholder as compensation for the use of borrowed money, usually at set intervals.

Bond Exchange

The process of trading bonds in the financial market, where investors buy and sell debt securities issued by entities like governments and corporations.

Market Rate of Interest

The prevailing rate of interest observed in the marketplace for loans and investments.

Trading

Buying and selling securities or commodities in financial markets, aiming for short-term profits.