Of the Following Errors, Which One by Itself Will Cause

question 30

Multiple Choice

Of the following errors, which one by itself will cause the trial balance to be out of balance?

• A) A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense.
• B) A $100 cash receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable.
• C) A $75 cash receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash.
• D) A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash.
• E) An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash.

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Definitions:

Anticipatorily Breached

This refers to a situation in law where a party indicates, either through their actions or words, that they will not fulfill their contractual obligations before the performance is due.

Resale

The act of selling an item that has already been purchased from the original seller to another buyer.

Consequential Damages

Damages that can be claimed in a lawsuit which are not a direct result of the act but occur as a secondary consequence of the wrongful act.

Unconscionable

Describing terms or conditions that are excessively unfair or unjust, often to a degree that they are deemed unenforceable under law.