If in Preparing a Work Sheet an Adjusted Trial Balance

question 111

Multiple Choice

If in preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column. The Balance Sheet columns will balance on completing the work sheet but with the wrong net income, if the amount sorted in error is:

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

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Definitions:

Supply Curve

The supply curve is a graphical representation showing how the quantity of a good that a supplier is willing and able to sell varies depending on the price.

Long-run Equilibrium

A state in which all factors of production and costs are variable, allowing firms in a perfectly competitive market to make zero economic profit, balancing supply and demand.

Maximum Profits

The highest possible financial gain that a business can achieve in a given period, optimizing revenue while minimizing costs.