If a discovered accounting error is a counterbalancing error that has already corrected itself no journal entry is required but financial statements should be restated. no journal entry is required and financial statements need not be restated. one journal entry is required and financial statements should be restated. two journal entries are required and financial statements should be restated.

If a discovered accounting error is a counterbalancing error that has already corrected itself no journal entry is required but financial statements should be restated. no journal entry is required and financial statements need not be restated. one journal entry is required and financial statements should be restated. two journal entries are required and financial statements should be restated.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter5: Closing Entries And The Post-closing Trial Balance

Section: Chapter Questions

Problem 5A: The bookkeeper has completed a work sheet and has journalized and posted the closing entries, but he...

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Similar questions

For each of the following situations, indicate whether itrepresents an accounting error and explain why it is or isnot an error. Also state whether a trial balance would indicate that an error exists for each situation.d. The debit side of a journal entry was recorded in theaccounts, but the credit side was not.
The ledger and journal entries are part of the posting process. Explain how an accountant would realize that an entry, or entries, are incorrect. Consider the role of the trial balance in your discussion and provide details on how you would locate the error(s).
For each of the following situations, indicate whether itrepresents an accounting error and explain why it is or isnot an error. Also state whether a trial balance would indicate that an error exists for each situation.b. Revenue was recognized when a customer purchased agift card for future use.
2. What is the difference between adjusting entries and correcting entries? a. Both adjusting entries and correcting entries are a planned part of the accounting process. b. Both adjusting entries and correcting entries are not a planned part of the accounting process. c. Correcting entries are a planned part of the accounting process, adjusting entries are not planned but arise when necessary to adjust errors. d. Adjusting entries are a planned part of the accounting process, correcting entries are not planned but arise when necessary to correct errors.
Which of the following error will be called as an Error of Principle? a. A transaction is written without knowing the fundamental knowledge of accounting b. A transaction is written partially in the books of accounts c. A transaction is posted wrongly in the books of accounts d. A Transaction is not recorded completely in the books of accounts
Journalizing and posting closing entries must be completed before financial statements can be prepared. True False
Which of the following errors will cause the trial balance totals to be unequal? A. posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted B. recording the same transaction more than once C. recording the same erroneous amount for both the debit and the credit parts of a transaction
Which of the following statements regarding the trial balance is most likely to be invalid? The purpose of preparing a trial balance is to determine whether the total debits and total credits in the ledger are equal. If total debits and credits are not equal, an error surely exists in the accounts. The trial balance is a prerequisite in preparing financial statements. The preparation of the trial balance creates a starting point for the preparation of the financial statements.
The bookkeeper has completed a work sheet and has journalized and posted the closing entries, but he forgot to journalize and post the adjusting entries from the work sheet. What are the effects of these actions and omissions? How would these actions and omissions affect the accounting records and the resulting financial statements?
A trial balance: lists only revenue and expense accounts; lists all accounts and their balances. will help detect omitted journal entries. detects all errors that could be made during the journalizing or posting steps of the accounting cycle.
The following errors were made in journalizing transactions. In each case, calculate the amount of the error and indicate whether the debit or the credit column of the trial balance will be understated or overstated.
What is a suspense account? Is it necessary that is suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?