Which of These Errors Would Be Detected by a Trial

question 6

Multiple Choice

Which of these errors would be detected by a trial balance?

• A) A cash sale was recorded in the sales account as $237 instead of $273 but was correctly recorded in the bank account.
• B) Office salaries were recorded as office expenses.
• C) The sales assistant pocketed the cash from a cash sale and did not ring it up on the register.
• D) Purchase of inventory on credit was recorded as a debit to the plant and equipment account and a credit to creditors.

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Definitions:

Effective Annual Rate

The interest rate that is adjusted for compounding over a given period. Essentially, it is the rate that accurately reflects the annual cost of borrowing or the annual return on investment.

Monthly Rate

Typically refers to an interest or finance charge applied on a monthly basis to loans, mortgages, or credits.

Discount Rate

The interest rate that the Federal Reserve charges commercial banks for loans, influencing the money supply and overall economic growth.

Perpetuity

A financial instrument or investment that pays a fixed amount of money indefinitely without a maturity date.