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Aipb - Mastering Corrections Of Accounting
Errors – Multiple Choices
While Nreviewing Na Ntrial Nbalance, Nyou Nnotice Nthe Nfollowing Naccount Nbalances. NWhich None Nis Nlikely Nto Nbe Nan Nerror? a. NInventory Nwith Na Ndebit Nbalance Nof N$43, b. NDiscount Non NBonds NPayable Nwith Na Ndebit Nbalance Nof N$4, c. NAccumulated NDepreciation Nwith Na Ndebit Nbalance Nof N$8, d. NAllowance Nfor NDoubtful NAccounts Nwith Na Ncredit Nbalance Nof N$23,000 N- NCORRECT NANSWERS-c. NAccumulated NDepreciation Nwith Na Ndebit Nbalance Nof N$8, Debiting Nan Ninsurance Npayment Nto NRent NExpense Ninstead Nof NInsurance NExpense Nis Nan Nexample Nof N... a. Nan Naccrual Nerror b. Na Ndeferral Nerror c. Na Nclassification Nerror
d. Nuse Nof Nan Nincorrect Naccounting Nprinciple N- NCORRECT NANSWERS-c. Na Nclassification Nerror InCo. Nrecorded Na Ncustomer's N$20,000 Ncheck Nas Na N$20,000 Ndebit Nto NCash Nand Nas Na N$2,000 Ncredit Nto NAccounts NReceivable. NThis Nis Nan Nexample Nof: a. Nan Noversight b. Nan Nincorrect Naccount Nclassification c. Na Ntransposition Nerror d. Na Nslide Nerror N- NCORRECT NANSWERS-d. Na Nslide Nerror During Na Nbank Nreconciliation, Na Ndeposit Nrecorded Nby Nthe Nbank Nbut Nnot Nin Nthe Ncompany's Nledger NCash Naccount Nis N... a. Nadded Nto Nboth Nthe Nbank Nbalance Nand Nthe Nledger NCash Naccount Nbalance b. Nadded Nto Nthe Nledger NCash Naccount Nbalance Nonly c. Nadded Nto Nthe Nbank Nbalance Nonly d. Nsubtracted Nfrom Nthe Nbank Nbalance Nand Nadded Nto Nthe Nledger NCash Naccount Nbalance N- NCORRECT NANSWERS-b. Nadded Nto Nthe Nledger NCash Naccount Nbalance Nonly The Nbank Nstatement Nbalance Nof N$7,000 Ndoes Nnot Ninclude Na Ncheck Noutstanding Nof N$1,000, Na Ndeposit Nin Ntransit Nof N$275, Nand Nanother Ncompany's N$250 Ncheck Nerroneously Ncharged Nagainst Nyour Nfirm's Naccount. NThe Nreconciled Nbank Nbalance Nis: a. N$6,375 N b. N$6,580 N c. N$6,525 N d. N$6,570 N- NCORRECT NANSWERS-c. N$6, You Nare Ndoing Na Nbank Nreconciliation Nfor NMay, N20Xl. NYou Nhave Na N$2, Nunadjusted Nledger Ncash Nbalance Nand Nthe Nfollowing Ndata:
- NOutstanding Nchecks: NNo. N719, N$200; NNo. N727, N$800; NNo. N732, N$
- NDeposits Nin Ntransit, N$1,
- NCheck NNo. N 742 N(for Nrepairs) Nwritten Nfor N$505 Nbut Nincorrectly Nrecorded Nas N$
- NNSF Ncheck Nfrom Na Ncustomer, N$
- NBank Nservice Ncharge Nfor NMay, N$
- NBalance Nper Nbank Nstatement, N$2, What Ndollar Namount Nshould Nbe Ndeducted Nfrom Nthe Nbalance Nper Nbank Nstatement? a. N$1,425 N b. N$1,625 N
d. Npayment Nof Nan Naccount Ndebited Nto NAccounts NPayable Nfor N$1,000 Nand Ndebited Nto NCash Nfor N$1,000 N- NCORRECT NANSWERS-c. Ncollection Nof Na Nreceivable Ndebited Nto NCash Nfor N$300 Nand Ncredited Nto NAccounts NPayable Nfor N$ A Ntrial Nbalance Nhas Ntotal Ndebits Nof$197,900 Nand Ntotal Ncredits Nof N$199,700. NWhich Naccount Nmay Ncontain Na Ntransposition Nerror? a. NA NCash Naccount Nwith Na Nbalance Nof N$ b. NAn NAccounts NReceivable Nwith Na Nbalance Nof N$1, c. NA NCost Nof NGoods NSold Naccount Nwith Na Nbalance Nof N$4, d. NAn NAccounts NPayable Nwith Na Nbalance Nof N$5,300 N- NCORRECT NANSWERS-d. NAn NAccounts NPayable Nwith Na Nbalance Nof N$5, Which Naccount Nshould Nnot Nappear Non Na Npost-closing Ntrial Nbalance? a. NSales b. NRetained NEarnings c. NAccumulated NDepreciation d. NDiscount Non NBonds NPayable N- NCORRECT NANSWERS-a. NSales Which Nof Nthese Nerrors Nis Neasiest Nto Nfind Nand Ncorrect? a. Nfailure Nto Nrecord Na Ntransaction b. Ncrediting NSales NRevenue Ninstead Nof NAccounts NReceivable Nfor Na Npayment c. Nthe NAccumulated NDepreciation Nbalance Nin Nthe Ndebit Ncolumn Nof Na Ntrial Nbalance d. Nincorrect Ncomputation Nof Nthe NNotes NPayable Naccount Nbalance N- NCORRECT NANSWERS-c. Nthe NAccumulated NDepreciation Nbalance Nin Nthe Ndebit Ncolumn Nof Na Ntrial Nbalance In NNovember, N20X0, Nyour Ncompany Nsublets Nspace Nfor N$500 Nand Nreceives Nadvance Nrent Nof N$1,500 Nfor Nthree Nmonths-November, NDecember Nand NJanuary- that Nis Ncredited Nto NRent NRevenue. NBefore Nthe N20X0 Nbooks Nare Nclosed, Nyou Ndiscover Nthat Nat Nyear-end, N20X0, Nno Nadjusting Nentry Nwas Nmade Nto NRent NRevenue. NTo Ncorrect Nthis Nomission N... a. NRent NRevenue Nshould Nbe Ndebited Nfor N$500. b. NRent NRevenue Nshould Nbe Ndebited Nfor N$1,000. c. NRent NRevenue Nshould Nbe Ndebited Nfor N$1,500. d. NRent NReceived Nin NAdvance Nshould Nbe Ncredited Nfor N$1,000. N- NCORRECT NANSWERS-a. NRent NRevenue Nshould Nbe Ndebited Nfor N$500. In Nearly NNovember, N20X0, Nyour Ncompany Nmakes Na N$4,500 Nadvance Npayment Nfor Nsix Nmonths' Ninsurance Nand Ndebits NPrepaid NInsurance Nfor Nthe Nentire Namount.
NBefore Nthe Nbooks Nare Nclosed Nfor Nthe Nyear, Nyou Ndiscover Nthat Nno Nadjusting Nentry Nhas Nbeen Nmade. NTo Ncorrect Nthis Nerror, Nyou Nwill N... a. Ndebit NInsurance NExpense Nfor N$3, b. Ncredit NInsurance NExpense Nfor N$3, c. Ndebit NInsurance NExpense Nfor N$1, d. Ndebit NPrepaid NInsurance Nfor N$1,500 N- NCORRECT NANSWERS-c. Ndebit NInsurance NExpense Nfor N$1, The NAllowance Nfor NDoubtful NAccounts N... a. Nhas Na Nnormal Ndebit Nbalance b. Nhas Na Nnormal Ncredit Nbalance c. Nappears Nonly Non Nthe Npost-closing Ntrial Nbalance d. Nany Nof Nthe Nabove N- NCORRECT NANSWERS-b. Nhas Na Nnormal Ncredit Nbalance Which Nof Nthe Nfollowing Nmight Nproduce Nan Naccount Nbalance Nthat Nis Nnot Nnormal? a. Nunderpayment Nof Nan Naccount Npayable b. Noverpayment Nof Nan Naccount Nreceivable Nby Na Ncustomer c. Nunderaccrual Nof Ninterest Nexpense d. Nnone Nof Nthe Nabove N- NCORRECT NANSWERS-b. Noverpayment Nof Nan Naccount Nreceivable Nby Na Ncustomer In Na Ntrial Nbalance, Nif Nthe Ntotal Ndebits Ndo Nnot Nequal Nthe Ntotal Ncredits Nand Nthe Ndifference Nis Ndivisible Nby N2, Nthe Nerror Ncould Nbe Nthe Nresult Nof N... a. Nadding Nor Ndeleting None Nor Nmore Nzeros Nto Nor Nfrom Nan Namount b. Nreversing Ntwo Ndigits c. Nomitting Nan Naccount Nbalance d. Nshowing Na Ndebit Nbalance Nas Na Ncredit Nor Na Ncredit Nbalance Nas Na Ndebit N- NCORRECT NANSWERS-d. Nshowing Na Ndebit Nbalance Nas Na Ncredit Nor Na Ncredit Nbalance Nas Na Ndebit Early Nin N20X2, Nwhile Nthe N20Xl Nbooks Nare Nstill Nopen, Nyou Nare Ninformed Nthat N20Xl NAdvertising NExpense Nincludes N$90,000 Nfor Nprinting Ncatalogs Nfor Na Ncampaign Nto Nbegin Nin NJanuary, N20X2 Nand Nthat Na N$50,000 Ninvoice Nfor Ntelevision Ncommercials Nshown Nin NDecember, N20Xl Nwas Ndebited Nto N20X NAdvertising NExpense. NThe Ncorrecting Nentry Nto Nrecord Nas Nof NDecember N31, N20Xl Nis N... a. Na Nnet Ndebit Nto NAdvertising NExpense Nof N$50, b. Na Nnet Ncredit Nto NAdvertising NExpense Nof N$40, c. Na Nnet Ncredit Nto NAdvertising NExpense Nof N$90, d. Na Nnet Ncredit Nto NAdvertising NExpense Nof N$140,000 N- NCORRECT NANSWERS-b. Na Nnet Ncredit Nto NAdvertising NExpense Nof N$40,
To Ncorrect Nthis Nerror Nin N20XO, Nyou Nneed Nto Nrecord Njust Nthe Nadjusting Nentry Nthat Nwas Nnot Nmade Nbecause N... a. Nan Nexpense Naccount Nis Ninvolved b. Nno Nerror Nwas Nmade Nrecording Nthe Nnote Npayable Non NJuly N1, N20X c. Nan Naccrual Nis Ninvolved Nrather Nthan Na Ndeferral d. Nthe Nbooks Nhave Nnot Nbeen Nclosed N- NCORRECT NANSWERS-d. Nthe Nbooks Nhave Nnot Nbeen Nclosed If Na Ncheck Nwritten Nby Nthe Ncompany Nis Nrecorded Nfor Nthe Nwrong Namount, Nthe Nerror Nis Nlikely Nto Nbe Nfound Nbecause N... a. Nthe Ntrial Nbalance Nwill Nbe Nout Nof Nbalance Nby Nan Namount Ndivisible Nby N 9 b. Nthe Ntrial Nbalance Nwill Nbe Nout Nof Nbalance Nby Nan Namount Ndivisible Nby N 2 c. Nthe Nbank Nreconciliation Nwill Nbe Nout Nof Nbalance Nwhen Nthe Ncheck Nclears d. Nthe Nbalance Nsheet Nwill Nbe Nout Nof Nbalance N- NCORRECT NANSWERS-c. Nthe Nbank Nreconciliation Nwill Nbe Nout Nof Nbalance Nwhen Nthe Ncheck Nclears On NOctober N1, N20Xl, NMarCo Nsigns Na None-year, N8% Nnote Npayable Nfor N$10, Nwith Nprinciple Nand Ninterest Ndue Non NOctober N1, N20X2. NIt Nis NMarCo's Nonly Nnote Noutstanding. NOn NOctober N1, N20X2 Nwhen Nthe Nnote Nis Npaid, NMarCo Ndebits NNotes NPayable Nand Ncredits NCash Nfor N$10,800, Nthe Nsum Nof Nprinciple Nand Ninterest. NThis Nerror Nis Nlikely Nto Nbe Nfound Nbecause N... a. Nthe Nbank Nreconciliation Nwill Nbe Nout Nof Nbalance Nwhen Nthe Ncheck Nclears b. Nthe Ntrial Nbalance Nwill Nbe Nout Nof Nbalance Nby N$ c. Nthe Ntrial Nbalance Nwill Nshow Na Nbalance Nin NNotes NPayable Nthat Nis Nnot Nnormal d. Ninterest Nexpense Nwill Nbe Nunderstated N- NCORRECT NANSWERS-c. Nthe Ntrial Nbalance Nwill Nshow Na Nbalance Nin NNotes NPayable Nthat Nis Nnot Nnormal While Nwriting Na Ncheck Nfor N$2,000 Non NApril N26, N20X2 Nfor Na Ncomputer Npurchased Non NDecember N26, N20Xl, Nyou Ndiscover Nthat Nwhen Nthe Npurchase Nwas Nmade Nin NDecember, Nthe N$2,000 Nhad Nbeen Ncredited Nto NNotes NPayable Ninstead Nof NAccounts NPayable. NIf Nthe Nbooks Nare Nclosed, Nwhat Nsingle Nentry Ncould Nyou Nmake? a. NNotes NPayable N2, NAccounts NPayable N2, b. NNotes NPayable N2, NCash N2, c. NAccounts NPayable N2, NCash N2, d. NAccounts NPayable N2, NNotes NPayable N2,000 N- NCORRECT NANSWERS-b. NNotes NPayable N2, NCash N2,
At Nyear Nend, Na Nphysical Ncount Nof Noffice Nsupplies Nreveals Nthat N$7,000 Nof Nsupplies Nwere Nused Nup Nbut Nno Nadjusting Nentry Nwas Nmade Nto Naccount Nfor Nthis. NIf Nthis Nerror Nis Nfound, Nit Nwill Nmost Nlikely Nbe Nbecause N... a. Nthe Ntrial Nbalance Nwould Nbe Nout Nof Nbalance Nby N$7, b. Nthe Ntrial Nbalance Nwould Nbe Nout Nof Nbalance Nby N$14, c. Nthe Ntrial Nbalance Nwould Nbe Nout Nof Nbalance Nby N$3, d. Nnone Nof Nthe Nabove N- NCORRECT NANSWERS-d. Nnone Nof Nthe Nabove If Nthe Nomission Nin Nquestion N 28 Nis Nfound Nbefore Nthe Nbooks Nare Nclosed, Nthe Nadjusting Nentry Nto Ncorrect Nthe Nerror Nwill Ninclude N... a. Na Ndebit Nto NOffice NSupplies NExpense b. Na Ncredit Nto NOffice NSupplies NExpense c. Na Ndebit Nto NInventory d. Nnone Nof Nthe Nabove N- NCORRECT NANSWERS-a. Na Ndebit Nto NOffice NSupplies NExpense The Ntype Nof Nerror Ngiven Nin Nquestion N 28 Nis Nknown Nas N... a. Na Ndeferra Nl Nerror b. Nan Naccrual Nerror c. Na Nprior Nperiod Nerror d. Nnone Nof Nthe Nabove N- NCORRECT NANSWERS-a. Na Ndeferra Nl Nerror OutCo Nfailed Nto Nrecord Ndepreciation Non Ncertain Nmachinery Nfor N20Xl. NThis Nerror N... a. Naffects Nthe Nincome Nstatement Nonly b. Naffects Nthe Nbalance Nsheet Nonly c. Naffects Nboth Nthe Nincome Nstatement Nand Nthe Nbalance Nsheet d. Naffects Nneither Nthe Nincome Nstatement Nnor Nthe Nbalance Nsheet N- NCORRECT NANSWERS-c. Naffects Nboth Nthe Nincome Nstatement Nand Nthe Nbalance Nsheet Preventing Nor Ndiscovering Naccounting Nerrors Nrequires Nknowing Nand Nusing N... a. Ndouble-entry Nbookkeeping b. Ninternal Ncontrols c. Ninspection Nof Nthe Ntrial Nbalance d. Nall Nof Nthe Nabove N- NCORRECT NANSWERS-d. Nall Nof Nthe Nabove On NJuly N1, N20Xl, Na Nmachine Nis Npurchased Nat Na Ncost Nof N$20,000. NBefore Nthe N20Xl Nbooks Nare Nclosed Nyou Ndiscover Nthat Nan Nerror Ncaused Nby Nusing Nan Nincorrect Nresidual Nvalue Nresulted Nin Ndepreciation Nfor Nthe Nyear Nbeing N$200 Ntoo
d. Nnone Nof Nthe Nabove N- NCORRECT NANSWERS-a. Nfailure Nto Nadjust NPrepaid NInsurance Nto Nits Nproper Nbalance Nat Nyear Nend Which Nof Nthe Nfollowing Nis Nan Nexample Nof Na Ndeferral Nerror? a. Ninitially Nrecording Nadvance Npayment Nof Nan Ninsurance Npremium Nto NPrepaid NInsurance Ninstead Nof NInsurance NExpense b. Nfailure Nto Nrecord Ninterest Nexpense Nincurred Nbut Nnot Nyet Npaid c. Nfailure Nto Nadjust NUnearned NRevenue Nto Nits Nproper Nbalance Nat Nyear Nend d. Nnone Nof Nthe Nabove N- NCORRECT NANSWERS-c. Nfailure Nto Nadjust NUnearned NRevenue Nto Nits Nproper Nbalance Nat Nyear Nend On NApril N1, N20XO, Nyour Ncompany Nfinances Npartial Npayment Nof Nthe Nsale Nof Nmachinery Nto Na Ncustomer Nfor Na N$20,000, N3-year, N8% Nnote Nreceivable. NInterest Nis Npayable Nannually Non NApril N1. NOn NDecember N31, N20X0, Nan Nadjusting Nentry Ndebits NInterest NReceivable Nand Ncredits NInterest NRevenue Nfor N$1,600. NThe Nentry Nnecessary Nto Ncorrect Nthe Nerror Nbefore Nthe Nbooks Nare Nclosed Nwould Ninclude N... a. Na N$400 Ndebit Nto NInterest NRevenue b. Na N$400 Ncredit Nto NInterest NExpense c. Na N$400 Ncredit Nto NUnearned NInterest NReceivable d. Na N$400 Ncredit Nto NSales N- NCORRECT NANSWERS-a. Na N$400 Ndebit Nto NInterest NRevenue Which Nof Nthe Nfollowing Nstatements Nabout Naccrual Nand Ndeferral Nerrors Nis Ncorrect? a. NAccrual Nerrors Naffect Nonly Nbalance Nsheet Naccounts. b. NDeferral Nerrors Naffect Nonly Nincome Nstatement Naccounts. c. NAccrual Nand Ndeferral Nerrors Naffect Nboth Nincome Nstatement Nand Nbalance Nsheet Naccounts. d. NAll Nabove Nstatements Nare Ncorrect. N- NCORRECT NANSWERS-c. NAccrual Nand Ndeferral Nerrors Naffect Nboth Nincome Nstatement Nand Nbalance Nsheet Naccounts. When Npreparing N20X2 Nfinancial Nstatements, Nyou Ndiscover Nthat Ndepreciation Nexpense Nwas Nnot Nrecorded Nin N20Xl. NWhich Nof Nthe Nfollowing Nstatements Nabout Ncorrection Nof Nthe Nerror Nin N20X2 Nis Nnot Ntrue? a. NThe Ncorrection Nrequires Na Nprior Nperiod Nadjustment. b. NThe Ncorrecting Nentry Nwill Nbe Ndifferent Nthan Nif Nthe Nerror Nhad Nbeen Ncorrected Nthe Nprevious Nyear Nwhen Nit Noccurred. c. NThe N20Xl NDepreciation NExpense Naccount Nwill Nbe Ninvolved Nin Nthe Ncorrecting Nentry. d. NAll Nabove Nstatements Nare Ntrue. N- NCORRECT NANSWERS-c. NThe N20Xl NDepreciation NExpense Naccount Nwill Nbe Ninvolved Nin Nthe Ncorrecting Nentry.
Which Nof Nthe Nfollowing Nis Nan Naccurate Ndescription Nof Nhow Nfailure Nto Nrecord Nan Naccrual Nis Nlikely Nto Nbe Nfound? a. NAn Nexpense Nthat Nwas Nnot Naccrued Nis Npaid, Nbut Nthere Nis Nno Npayable Non Nthe Nbooks Nas Nthere Nshould Nbe. b. NA Nrevenue Nthat Nwas Nnot Naccrued Nis Nreceived, Nbut Nthere Nis Nno Nreceivable Non Nthe Nbooks Nas Nthere Nshould Nbe. c. NA Nreview Nof Nthe Ntrial Nbalance Nreveals Nthat Nan Nasset Nor Nliability Naccount Nthat Nis Nnormally Npresent Nafter Naccruals Nare Nrecorded Nis Nnot Npresent. d. NAll Nabove Nstatements Nare Naccurate Ndescriptions Nof Nhow Nfailure Nto Nrecord Nan Naccrual Nis Nlikely Nto Nbe Nfound. N- NCORRECT NANSWERS-d. NAll Nabove Nstatements Nare Naccurate Ndescriptions Nof Nhow Nfailure Nto Nrecord Nan Naccrual Nis Nlikely Nto Nbe Nfound. A Ncomparison Nof Nthis Nyear's Ntrial Nbalance Nwith Nlast Nyear's Nmay Nbe Na Ngood Nway Nto Ndiscover N... a. Nwhether Nnormal Naccruals Nwere Nmade Nthis Nyear b. Nwhether Nnormal Ndeferrals Nwere Nmade Nthis Nyear c. Nerrors Nin Naccruals Nor Ndeferrals Nthat Nhave Nresulted Nin Nover- Nor Nunderstatement Nof Nrevenues Nor Nexpenses d. Nall Nof Nthe Nabove N- NCORRECT NANSWERS-d. Nall Nof Nthe Nabove When Ntrying Nto Nfind Nerrors Nin Na Ntrial Nbalance Nthat Ndoes Nnot Nbalance, Nthe first Nstep Nshould Nbe Nto N... a. Nwork Nfrom Nthe Nledger Nto Nthe Ntrial Nbalance Nto Ncheck Nthe Njournal Nentries Nand Npostings Nfor Nerrors b. Nsee Nif Nthe Nledger Naccount Nbalances Nhave Nbeen Ncalculated Ncorrectly c. Nwork Nfrom Nthe Nledger Nto Nthe Ntrial Nbalance Nto Nverify Nthat Nledger Naccount Nbalances Nwere Ntransferred Nto Nthe Ncorrect Ndebit Nor Ncredit Ncolumns d. Nwork Nfrom Nthe Ntrial Nbalance Nto Nthe Nledger Nto Nverify Nthat Nledger Naccount Nbalances Nwere Ntransferred Nto Nthe Ncorrect Ndebit Nor Ncredit Ncolumns N- NCORRECT NANSWERS-c. Nwork Nfrom Nthe Nledger Nto Nthe Ntrial Nbalance Nto Nverify Nthat Nledger Naccount Nbalances Nwere Ntransferred Nto Nthe Ncorrect Ndebit Nor Ncredit Ncolumns Which Nof Nthe Nfollowing Nis Nnot Na Nnormal Nbalance? a. Na N$6,000 Ncredit Nbalance Nin NDiscount Non NBonds NPayable b. Na N$9,000 Ncredit Nbalance Nin NUnearned NService NRevenue c. Na N$1,200 Ndebit Nbalance Nin NSales NReturns Nand NAllowances d. Na N$10,000 Ndebit Nbalance Nin NTreasury NStock N- NCORRECT NANSWERS-a. Na N$6,000 Ncredit Nbalance Nin NDiscount Non NBonds NPayable Which Nof Nthe Nfollowing Nuncorrected Nerrors Nwould Nresult Nin Nboth Nassets Nand Nnet Nincome Nbeing Noverstated?
