A Trial Balance Has Total Debits of $720,000 and Total

question 149

Multiple Choice

A trial balance has total debits of $720,000 and total credits of $850,000, with a debit balance of $65,000 for notes payable. This situation indicates:

• A) a slide.
• B) an incorrect posting.
• C) a transposition.
• D) that none of the above are correct.

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Definitions:

Relevant Cost

Expenses that are directly tied to a specific business decision, which may affect the outcome of that decision.

Discounted Price

The reduced price of an item after applying a discount, which lowers the selling price from its original level.

Scrap Value

The calculated resale value of an asset at the end of its period of serviceability.

Reworked Cost

The expenses associated with correcting defective products or redoing a production process to meet quality standards after the initial manufacturing effort.