Which of the Following Errors Will Cause the Trial Balance

question 6

Multiple Choice

Which of the following errors will cause the trial balance to be out of balance?

• A)An entire transaction was entered in the general journal as $27 instead of $72.
• B)An entire transaction was omitted from the general journal.
• C)The balance of an account was incorrectly computed.
• D)A debit entry was entered in the wrong debit account.

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Definitions:

Gold Reserves

The amount of gold held by a central bank or government to support the value of its currency and to settle debts or engage in trade.

Create Money

The process by which the central bank or financial institutions increase the money supply in the economy, typically through activities such as lending or purchasing government securities.

Demand Deposits

Bank account balances that can be withdrawn on demand with no prior notice, such as checking accounts, providing liquidity and flexibility for accountholders.

Inflation

The rate of growth in the average cost of goods and services, which lowers the purchasing capacity.