Which of the Following Is Not a Short-Cut in Finding

question 154

Multiple Choice

Which of the following is not a short-cut in finding errors on the trial balance?

• A) Determine the difference between debits and credits and look for the amount.
• B) Determine the amount and change any account to make the trial balance correct.
• C) Determine the difference between debits and credits, divide the amount by 2, look for the amount.
• D) Determine the difference between debits and credits, divide the amount by 9, if it divides evenly, look for a transposition or slide error.

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Definitions:

Financing Activities

Transactions and events where cash flows result from raising capital and repaying debts, critical for understanding the company’s financial health.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use.

Long-term Investments

Investments made with the intention of holding the asset for an extended period, typically exceeding one year, such as stocks, bonds, or real estate.

Net Income

The total profit of a company after all expenses, including taxes and costs, have been deducted from total revenue.