A $200 Credit to Interest Payable Was Instead Recorded in Error

question 23

Multiple Choice

A $200 credit to Interest Payable was instead recorded in error as a $200 credit to Cash in an adjusting entry,which has been posted to the ledger accounts.Which of the following is the result of this error?

• A)The trial balance is out of balance by $200.
• B)Total assets are understated by $200.
• C)Net income is overstated by $200.
• D)Total liabilities are overstated by $200.

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Definitions:

Organized Visual Scanning

A systematic method of visually examining an environment or image by effectively moving one's gaze across the area to identify important details.

Limbic System

A sophisticated network of nerve systems and pathways in the brain responsible for managing fundamental emotions and impulses.

Brain Areas

Specific regions within the brain, each responsible for different functions, such as the hippocampus for memory or the prefrontal cortex for decision making.

Forebrain

The anterior part of the brain, including the cerebral hemispheres, thalamus, and hypothalamus, responsible for complex behaviors and cognitive functions.