The Spontaneous Combustion Rocket Shoppe in downtown Fargo,North Dakota,generates three quarters of its revenue from orders taken over the Internet.The revenue clearing account is debited by the total of cash and credit receipts and credited by the total of storefront and Internet sales.This is an example of a
A)data integrity test.
B)zero-balance test.
C)trial balance audit.
D)cross-footing balance test.

Question

Quizplus · Accepted Answer

The description matches a zero-balance test, where the goal is to ensure that the total debits (from cash and credit receipts) equal the total credits (from storefront and Internet sales), resulting in a zero balance when subtracting one from the other.

The Spontaneous Combustion Rocket Shoppe in Downtown Fargo,North Dakota,generates Three