Which of the Following Errors Would Cause the Balance Sheet

question 132

Multiple Choice

Which of the following errors would cause the Balance Sheet columns of a work sheet to be out of balance?

• A)Entering an asset amount in the Income Statement Debit column.
• B)Entering a liability amount in the Income Statement Credit column.
• C)Entering an expense amount in the Balance Sheet Debit column.
• D)Entering a revenue amount in the Balance Sheet Debit column.
• E)Entering a liability amount in the Balance Sheet Credit column.

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Definitions:

Allowance Method

is an accounting technique that estimates and reports the likely amount of uncollectible accounts receivable as an allowance for doubtful accounts.

General Ledger Account

A comprehensive record containing all the financial transactions of a business.

Aging

A method used in accounting to categorize a company's accounts receivables according to the length of time an invoice has been outstanding.