A Trial Balance Taken at Year-End Showed Total Credits Exceed

question 21

Multiple Choice

A trial balance taken at year-end showed total credits exceed total debits by $4,950. This discrepancy could have been caused by:

• A) An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash.
• B) A net income of $4,950.
• C) The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950.
• D) The balance of $5,500 in the Office Equipment account being entered on the trial balance as a debit of $550.
• E) An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable.

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Definitions:

Japanese Manufacturers

Companies based in Japan known for their emphasis on quality, innovation, and efficient production techniques, often within the automobile and electronics industries.

Local Optimization

A process of optimizing a specific area or department within an organization without necessarily considering its impact on the whole system.

Global Optimization

Global Optimization is the process of finding the best possible solution or achieving the highest efficiency across all possible solutions in a given mathematical model or situation.

Decentralized Supply Chain

A supply chain management strategy where decisions and activities are distributed among various stakeholders or units instead of being centrally controlled, allowing for flexibility and localized decision-making.