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13. Which of the following errors would not cause a trial balance to disagree?

1. Cash sales entered in the cash book but not posted to the sales account
2. The debit side of the purchases account has been undercast
3. Bank charges not entered in the cash book
4. Rent paid shown on the credit side of the cash book has been credited to the rent receivable account

14. Which TWO of the following errors would cause the total of the debit column and the total of

the credit column of a trial balance not to agree?

(1) A transposition error was made when entering a sales invoice into the sales day book

(2) A cheque received from a customer was credited to cash and correctly recognised in receivables

(3) A purchase of non-current assets was omitted from the accounting records

(4) Rent received was included in the trial balance as a debit balance

1. 1 and 2
2. 1 and 3
3. 2 and 3
4. 2 and 4

15. Which of the following statements is TRUE for a limited liability company?

1. Members have unlimited liability for the debts of the business.
2. Members have limited liability for the debts of the business.
3. Only the limited partners have limited liability for the debts of the business.
4. The general partner has unlimited liability for the debts of the business.

16. The major types of transactions that affect retained earnings are:

1. paid-in capital and common stock.
2. assets and liabilities.
3. revenues, expenses, and dividends.
4. revenues and liabilities.