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:

Departmentalization

The method of segmenting an organization into various departments, each responsible for distinct tasks or functions.

Functional Structure

A form of organization where the company is divided into departments each handling activities related to a particular function such as marketing, production, or human resources.

Divisional Structure

An organizational framework where operations are divided into semi-autonomous divisions, each responsible for its own product lines, operations, and resources.

Specific Skills

Specialized abilities and knowledge that are acquired through training or experience and are necessary for a particular job or activity.