“Correcting Errors” in Accounting & Finance

107 questions across 1 technology.

Accounting & Finance

107 questions in 1 technology

#	Question	Technology	Topic	Level
1	How are bookkeeping errors corrected? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
2	Why must a correcting journal entry include a narrative? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
3	What is the double effect of correcting an error of omission? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
4	What is the effect on profit of correcting an expense that was omitted? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
5	Walk through correcting a one-sided error using the suspense account. Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Advanced
6	How do you clear a suspense account across several discovered errors? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Advanced
7	What is an error of omission? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
8	What is an error of commission? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
9	What is an error of principle? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
10	What is a transposition error? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
11	Why can't you simply erase or overwrite an error in the accounting records? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
12	What is the first step when you discover the trial balance does not balance? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
13	What is an error of original entry? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
14	What is a complete reversal of entries? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
15	What is a compensating error and how is it corrected? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
16	How do you correct an error of duplication? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
17	How do you correct an amount posted to the correct account but on the wrong side? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
18	How do you correct a purchase invoice posted to the wrong supplier account? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
19	How do you correct an undercast or overcast in a ledger account? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
20	How do you correct closing inventory that was valued incorrectly after the accounts were drafted? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
21	How do you correct wages posted to the drawings account? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
22	How does the suspense account feature in error correction? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Advanced
23	How do error corrections affect profit, and what is a statement of corrected profit? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Advanced
24	How do you correct an error where cash discount allowed was posted to discount received? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Advanced
25	How do you correct a complete reversal of entries for a cash payment? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Advanced
26	How does a control account help detect errors? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Intermediate
27	What types of errors are NOT revealed by a trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
28	What types of errors ARE revealed by a trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
29	How are errors corrected in computerized bookkeeping compared with manual? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Intermediate
30	How do bank errors feature in a reconciliation? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Intermediate
31	How do you correct VAT errors from previous returns? Bookkeeping › VAT Records	Bookkeeping	VAT Records	Intermediate
32	Which errors affect the control account and which affect the list of balances? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Advanced
33	How do compensating errors affect the trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Advanced
34	What penalties and interest can arise from VAT errors or late filing? Bookkeeping › VAT Records	Bookkeeping	VAT Records	Advanced
35	What is the journal (general journal) used for? Bookkeeping › Books of Prime Entry	Bookkeeping	Books of Prime Entry	Beginner
36	What is a credit note and when is it issued? Bookkeeping › Books of Prime Entry	Bookkeeping	Books of Prime Entry	Beginner
37	What is a petty cash voucher? Bookkeeping › Cash Book & Petty Cash	Bookkeeping	Cash Book & Petty Cash	Beginner
38	What is the purpose of control accounts? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Beginner
39	What is a bank reconciliation? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Beginner
40	Why do the cash book and bank statement balances differ? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Beginner
41	How often should bank reconciliations be performed? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Beginner
42	What is a trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
43	What is the purpose of a trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
44	Which balances go on the debit side and which on the credit side of the trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
45	What is a suspense account and when is it opened? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
46	If a trial balance balances, does it mean the accounts are correct? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
47	When is a trial balance prepared? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
48	What are some disadvantages or risks of computerized bookkeeping? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Beginner
49	What is the audit trail in computerized bookkeeping? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Beginner
50	What skills does a bookkeeper still need despite using software? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Beginner
51	Why must cash receipts be banked promptly? Bookkeeping › Cash Book & Petty Cash	Bookkeeping	Cash Book & Petty Cash	Beginner
52	Why are control accounts prepared by someone other than the ledger clerk? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Beginner
53	What is a direct debit and how does it appear in reconciliation? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Beginner
54	What is a standing order? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Beginner
55	What documents are needed to perform a bank reconciliation? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Beginner
56	What does 'reconciling item' mean? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Beginner
57	What is a balance brought down and carried down? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
58	How do you balance a ledger account? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
59	What is the total of the trial balance meant to demonstrate? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
60	What comes after the trial balance in the accounting cycle? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
61	How does software help with VAT returns? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Beginner
62	What controls help ensure completeness and accuracy in the books of prime entry? Bookkeeping › Books of Prime Entry	Bookkeeping	Books of Prime Entry	Intermediate
63	What is the imprest system for petty cash? Bookkeeping › Cash Book & Petty Cash	Bookkeeping	Cash Book & Petty Cash	Intermediate
64	What internal controls apply to cash and petty cash handling? Bookkeeping › Cash Book & Petty Cash	Bookkeeping	Cash Book & Petty Cash	Intermediate
65	What entries arise from bank charges, interest, and standing orders in the cash book? Bookkeeping › Cash Book & Petty Cash	Bookkeeping	Cash Book & Petty Cash	Intermediate
66	Why might the petty cash book not balance and how do you investigate? Bookkeeping › Cash Book & Petty Cash	Bookkeeping	Cash Book & Petty Cash	Intermediate
67	What is a contra between the sales and purchases ledgers (set-off)? Bookkeeping › Sales & Purchase Ledgers	Bookkeeping	Sales & Purchase Ledgers	Intermediate
68	What is a control account reconciliation? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Intermediate
69	Why is a control account a form of internal control? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Intermediate
70	What are the steps to prepare a bank reconciliation? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Intermediate
71	Which differences require an adjustment to the cash book and which do not? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Intermediate
72	How does a bank reconciliation help detect fraud or error? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Intermediate
73	What causes a bank reconciliation not to balance and how do you investigate? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Intermediate
74	How is the trial balance used to prepare financial statements? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
75	How do you locate the difference when a trial balance does not balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
76	What is period-end closing (locking) in accounting software? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Intermediate
77	What is the difference between capital and revenue expenditure? Bookkeeping › Books of Prime Entry	Bookkeeping	Books of Prime Entry	Intermediate
78	What is the difference between the memorandum ledger balance and the control account balance? Bookkeeping › Sales & Purchase Ledgers	Bookkeeping	Sales & Purchase Ledgers	Intermediate
79	How is a bad debt written off reflected in the sales ledger control account? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Intermediate
80	What is the correct order: update the cash book first or reconcile the statement first? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Intermediate
81	How do you treat interest received and charged in the reconciliation? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Intermediate
82	Why do assets and expenses have debit balances while income, liabilities, and capital have credit balances? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
83	How do accruals and prepayments affect the figures taken to the financial statements from the trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
84	What is the effect of depreciation on the trial balance and statements? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
85	What is the difference between a trial balance error being 'in the trial balance' versus 'in the ledger'? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
86	What is the risk of miscoding transactions in software, and how is it controlled? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Intermediate
87	How does software enforce segregation of duties? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Intermediate
88	How would you record the purchase of a non-current asset on credit in the books? Bookkeeping › Books of Prime Entry	Bookkeeping	Books of Prime Entry	Advanced
89	How is petty cash treated at the period end for the financial statements? Bookkeeping › Cash Book & Petty Cash	Bookkeeping	Cash Book & Petty Cash	Advanced
90	How do you account for an irrecoverable (bad) debt in the sales ledger? Bookkeeping › Sales & Purchase Ledgers	Bookkeeping	Sales & Purchase Ledgers	Advanced
91	How do you reconcile the sales ledger to the sales ledger control account? Bookkeeping › Sales & Purchase Ledgers	Bookkeeping	Sales & Purchase Ledgers	Advanced
92	How do you handle a supplier statement reconciliation in the purchases ledger? Bookkeeping › Sales & Purchase Ledgers	Bookkeeping	Sales & Purchase Ledgers	Advanced
93	How is a contra/set-off recorded in the control accounts? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Advanced
94	How do you prepare a sales ledger control account from incomplete information? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Advanced
95	How would an overstatement of the sales day book affect the control account reconciliation? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Advanced
96	How do you deal with stale or cancelled cheques in a reconciliation? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Advanced
97	What is an extended trial balance (ETB)? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Advanced
98	How does closing inventory appear in relation to the trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Advanced
99	How do you record opening entries when starting a new set of books? Bookkeeping › Books of Prime Entry	Bookkeeping	Books of Prime Entry	Advanced
100	How do you account for a provision (allowance) for doubtful debts affecting receivables? Bookkeeping › Sales & Purchase Ledgers	Bookkeeping	Sales & Purchase Ledgers	Advanced
101	How is VAT bad-debt relief handled when writing off a receivable? Bookkeeping › Sales & Purchase Ledgers	Bookkeeping	Sales & Purchase Ledgers	Advanced
102	How do you prepare a purchases ledger control account to find missing credit purchases? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Advanced
103	How does an omitted discount received affect the PLCA reconciliation? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Advanced
104	How does a contra entry affect both control accounts and the reconciliations? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Advanced
105	How does the timing of banking affect month-end reconciliation? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Advanced
106	How is a suspense account shown if the trial balance still doesn't balance at reporting time? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Advanced
107	How do you incorporate a correction of a prior error into the trial balance / statement of corrected profit? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Advanced