At year-end, a trial balance showed total credits exceeding total debits by $5700. This difference could have been caused by:

A. The balance of $57,000 in Accounts Payable being entered in the trial balance as $5700.
B. An error in the general journal where a $5700 increase in Accounts Payable was recorded as a decrease in Accounts Payable.
C. A net income of $5700.
D. The balance of $6400 in the Office Equipment account being entered on the trial balance as a debit of $700.
E. An error in the general journal where a $5700 increase in Accounts Receivable was recorded as an increase in Cash.


Answer: D

Business

You might also like to view...

To understand your own values, you should

A. understand how ethics differs from legal requirements. B. take a course on value creation and definition. C. articulate them in writing and test them through daily decision making. D. focus on cutting costs while improving quality. E. write a strong marketing plan that will help you achieve your desired profit level.

Business

The chapter suggests that when revising and editing, a manager should be guided by the “Seven C’s” of good business writing. List and discuss four of these principles.

What will be an ideal response?

Business

Which of the following is recommended for the initiation phase of a multi-stakeholder dialogue?

a. beginning with your perspective on the problem and proposing a solution b. excluding problem stakeholders that will cause disruptions c. meeting with each stakeholder independently d. using an independent third-party facilitator

Business

How can ease-of-use be used as a factor for differentiation of products?

What will be an ideal response?

Business