Question

If in preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column. The Balance Sheet columns will balance on completing the work sheet but with the wrong net income, if the amount sorted in error is:____________.
a. Aliability amount placed in the Income Statement Credit column.
b. A liability amount placed in the Balance Sheet Debit column.
c. An expense amount placed in the Balance Sheet Credit column.
d. A revenue amount placed in the Balance Sheet Debit column.
e. An asset amount placed in the Balance Sheet Credit

Answer 1

Answer:A. A liability amount placed in the Income Statement Credit column.

Explanation: A balance sheet is a financial statement which contains a report of what a business owes(debts), what a business owns(credits) and the total amount or value of the shareholders investments. It helps businesses to calculate or determine it's financial status.

Errors can be encountered while preparing balance sheet,by recording the Liability or debt in the income or credit column of the balance sheet.