BD One Company entered into the following transactions. Choose the one which represents an accounting error.
A) A shareholder of BD One Company purchases a new car, but this was not recorded by the company.
B) Revenue was recognized when a customer received services from BD One Company.
C) Cash received from a customer in payment of his account was debited to Cash and credited to Accounts Receivable.
D) BD One Company ordered inventory and the order was recorded by a debit to Inventory and a credit to

Question

Quizplus · Accepted Answer

The transaction recorded in option D is incomplete as there is no credit account mentioned. The credit should be either to accounts payable or cash, depending on the payment terms with the supplier. This represents an accounting error. The other options represent transactions that are either not recorded, recorded correctly, or may require some adjustment.

BD One Company Entered into the Following Transactions