trial balance does not balance. The owner believes the following mistakes WOULD cause an imbalance. Do you agree? (Answer TRUE or FALSE for each statement) A. The owner forgot to record a cash sale B. A credit sale was recorded as a debit to sales and a debit to trade receivables C. When transferring the bank overdraft from the Cash T account it was entered on the debit side of the trial balance D. Rates expense of £500 was debited to rent expenses and credited to cash E. A payment to a supplier of £690 was entered to cash as £690 but to trade payables as £609
trial balance does not balance. The owner believes the following mistakes WOULD cause an imbalance. Do you agree? (Answer TRUE or FALSE for each statement) A. The owner forgot to record a cash sale B. A credit sale was recorded as a debit to sales and a debit to trade receivables C. When transferring the bank overdraft from the Cash T account it was entered on the debit side of the trial balance D. Rates expense of £500 was debited to rent expenses and credited to cash E. A payment to a supplier of £690 was entered to cash as £690 but to trade payables as £609
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A
imbalance. Do you agree? (Answer TRUE or FALSE for each statement)
A. The owner forgot to record a cash sale
B. A credit sale was recorded as a debit to sales and a debit to trade receivables
C. When transferring the bank overdraft from the Cash T account it was entered on the
debit side of the trial balance
D. Rates expense of £500 was debited to rent expenses and credited to cash
E. A payment to a supplier of £690 was entered to cash as £690 but to trade payables as
£609
Transcribed Image Text:A trial balance does not balance. The owner believes the following mistakes WOULD cause an
imbalance. Do you agree? (Answer TRUE or FALSE for each statement)
A.
The owner forgot to record a cash sale
В.
When transferring the bank overdraft from the Cash T account it was entered on the
A credit sale was recorded as a debit to sales and a debit to trade receivables
С.
debit side of the trial balance
D.
Rates expense of £500 was debited to rent expenses and credited to cash
A payment to a supplier of £690 was entered to cash as £690 but to trade payables as
£609
Е.
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