When a Transposition Error Is Made on the Trial Balance

question 12

Multiple Choice

When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be

• A) zero
• B) twice the amount of the transposition
• C) one-half the amount of the transposition
• D) divisible by 9

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Definitions:

Apartment Building

A residential building containing multiple apartments or units meant for separate tenants.

Warranty

A promise, statement, or other representation that an item has certain qualities; also, an insured’s promise to abide by restrictions, especially those written into an insurance policy. Also, an obligation imposed by law that an item will have certain qualities. Warranties made by means of a statement or other affirmation of fact are called express warranties; those imposed by law are implied warranties.

Insured

A party that is protected by an insurer against losses caused by the risks specified in an insurance policy.

Insurance Company

A financial institution that provides a range of insurance policies to protect individuals and businesses against the risk of financial losses in return for premium payments.