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Question
The credit purchase of a delivery truck for $4,700 was posted to Delivery Trucks as a $4,700 debit and to Accounts Payable as a $4,700 debit. What effect would this error have on the trial balance?A.The total of the Debit column of the trial balance will exceed the total of the Credit column by $4,700.
B.The total of the Credit column of the trial balance will exceed the total of the Debit column by $4,700.
C.The total of the Debit column of the trial balance will exceed the total of the Credit column by $9,400.
D.The total of the Credit column of the trial balance will exceed the total of the Debit column by $9,400.
E.The total of the Debit column of the trial balance will equal the total of the Credit column.
Answer
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Related questions
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Which of the following statements is incorrect?
A.Adjustments to prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities.
B.Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded.
C.Adjusting entries can be used to record both accrued expenses and accrued revenues.
D.Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time.
E.Adjusting entries affect the cash account.
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B.Assigning revenues to the periods in which they are earned.
C.Assigning expenses to the periods in which they are incurred.
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E.All of these.
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C.Is recognized by debiting Cost of Goods Sold.
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Another name for temporary accounts is:
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Which of the following statements describing the debt ratio is false?
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B.A relatively high ratio is always desirable.
C.The dividing line for a high and low ratio varies from industry to industry.
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E.All of these.
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