Which of the Following Errors, Each Considered Individually, Would Cause

question 197

Multiple Choice

Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

• A) a transaction was not posted
• B) a payment of $67 for insurance was posted as a debit of $76 to Prepaid Insurance and a credit of $76 to Cash
• C) a payment of $4,450 to a creditor was posted as a debit of $4,500 to Accounts Payable and a credit of $450 to Accounts Receivable
• D) cash received from customers on account was posted as a debit of $720 to Cash and a credit of $720 to Accounts Payable

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Definitions:

Dividends

Payments made to shareholders out of a company's profits.

Steady Source

A consistent and reliable means of obtaining something, such as income or information.

Clientele Argument

A theory suggesting that companies attract investors whose preferences align with the company's policies regarding dividends, financing, and investment.

Dividend Theory

A set of principles and theories that explain the rationale and effects of dividend policies on an organization's value and shareholders' wealth.