Identify the Item Below That Would Cause the Trial Balance

question 228

Multiple Choice

Identify the item below that would cause the trial balance to not balance.

• A)A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash.
• B)The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and $2,350 credit to Accounts Payable.
• C)A $50 cash receipt for the performance of a service was not recorded at all.
• D)The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200.
• E)The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

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Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Endowment

In economics, an endowment is the total range of assets, including both physical goods and intangible elements like labor skills, that an individual or entity owns.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.