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

question 45

Multiple Choice

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

• A) Cash received from a customer on account was posted as a credit of $120 to Cash, $120 to Income from Services, and a debit of $220 to Accounts Receivable.
• B) A payment of $76 for supplies was posted as a debit of $67 to Supplies Expense and a credit of $67 to Cash.
• C) A payment of $391 to a creditor was neglected to be journalized by the accountant of a company.
• D) A receipt of $691 from a customer was posted as a debit of $961 to Cash and a credit of $961 to Inventory.
• E) A payment of $83 to pay the telephone bill (received last week) was posted as a credit of $83 to Accounts Payable and a debit of $83 to cash.

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Definitions:

Goodwill

An intangible asset representing the excess value paid over the net fair value of identifiable assets and liabilities during an acquisition.

Parent-Company Extension Method

An accounting technique used to consolidate the financial statements of a parent company and its subsidiaries, where the entire business is treated as an extension of the parent company.

Goodwill

A non-physical asset that is created when one company is bought by another for an amount exceeding the fair market value of the acquired company's net identifiable assets.

Non-Controlling Interest

The portion of equity ownership in a subsidiary not attributed to the parent company, often reflected in the consolidated financial statements.