A Company Did Not Record the Receipt and Payment of an Utility

question 22

Multiple Choice

A company did not record the receipt and payment of an utility bill for $2,500.Is the trial balance out of balance?

• A)No.
• B)Yes,by $2,500.
• C)Yes,by $5,000.
• D)Yes,by an indeterminate amount.

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Definitions:

Debit Balances

Accounts with a balance that represents amounts owed or expenses; typically assets and expenses accounts.

Financial Statement Order

The sequence in which financial statements are prepared and presented, typically starting with the income statement, followed by the statement of financial position, and so on.

Financial Ratios

Quantitative measures derived from financial statement analysis to evaluate the financial health of a company.

Underlying Conditions

Fundamental or root circumstances or factors that directly impact outcomes, often requiring analysis to fully understand their effects.