1. Which of the following is an example of an error that would cause the trial balance to be out of balance?

A. A journal entry was posted as a debit to Cash and a credit to Sales Revenue when the company received a $400 payment from a customer on account.

B A $350 transaction was not recorded at all.

C A journal entry was posted as a debit to Cash for $525 and a credit to Accounts Receivable for $552.

D A purchase of supplies on account for $100 was posted as a debit to supplies for $10 and a credit to accounts payable for $10.

2. Net Income would be understated by a failure to record collection of accounts receivable.

True

False