IBM
C2020-605 · Question #50
In the diagrams below, a journal entry for Cash (account B100000, an asset account in the balance sheet) and External Reserves (account R100_000, a cost account in the income statement) is recorded…
The correct answer is B. Balance Sheet for Net Income in the general configuration should be B711000. See the full explanation below for the reasoning.
Question
In the diagrams below, a journal entry for Cash (account B100000, an asset account in the balance sheet) and External Reserves (account R100_000, a cost account in the income statement) is recorded in the amount of 100. The balance sheet in the Journals Across report does not balance anymore because Total Assets (account B450000) has a value of 1200 and Total Liabilities and Equity (account B750000) has a value of 1100. What caused the difference between the Total Assets and Total Liabilities and Equity accounts?
Exhibit
Options
- AThe company journal type, US GAAP, should credit account B711000 for 100.
- BBalance Sheet for Net Income in the general configuration should be B711000.
- CIn the general configuration, no value has been specified in the Other Difference for Automatic
- DNet Income (Non-integrated) in the general configuration should be B711000.
How the community answered
(55 responses)- A2% (1)
- B84% (46)
- C9% (5)
- D5% (3)
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