If the trial balance is balanced, are we certain that there are no errors in it? How so?

Q: What is a trial balance? What is its purpose?

A: Trial Balance: Trial balance is the summary of accounts, and their debit and credit balances at a…

Q: What concept underlies the temporal method of translation? What concept underlies the current rate…

A: The basic objective underlying the temporal method of translation is to produce a set of U.S.…

Q: For information to be relevant, it has to possess: Only predictive value Both predictive and…

A: Relevance is a Fundamental characteristic of useful Financial information. Relevant information can…

Q: Give two examples of errors of principle?

A: Errors of principle refers to errors that are carried out at time of noting down transactions…

Q: Why or what are the reason or reasons that would cause the trial balance to be considered as…

A: Trial Balance - After transferring all the transactions into Ledgers Company closes the accounts and…

Q: I just need to verify that these IRRs are correct.

A: Data given:  Year  CF 1 0 500000 1 -447000 2 -447000 3 -447000 4 881000   To check…

Q: Which would cause the trial balance to have a not equal total

A: Trial balance is a statement that is prepared with the debit and credit balance of ledger accounts.

Q: The answer provided is not correct, please provide the correct value

A: Free Cash Flow Free Cash flow which can be determined by using the amount of net operating cash flow…

Q: What is the purpose of a limit check?

A: Internal controls: Internal controls are the control established within an organization to check…

Q: Are there any reasons to question the validity of the CAPM?Explain.

A: In any ‘well-diversified portfolios’ the relationship between the ‘risk’ and the ‘required rate of…

Q: uncertainty?

A: Answer - Option D Relevance is where the information is useful and appropriate , predictive or…

Q: he differences in the risks and mechanics of on-balance-sheet hedging and off-balance-sheet h

A: Step 1 Balance sheet enclosure is not intended to protect the company's profit margin from monetary…

Q: What is a  negative balance?

A: There is a chart of accounts in accounting which contains various accounts heads like- there are…

Q: It is good to assume that unusual items will be zero. True or False

A: Unusual or Infrequent Items are transactions that are unusual in nature or infrequent. The items…

Q: Determine if the mistake is counterbalancing or noncounterbalancing. Give a specific example for…

A: The mistake is counterbalancing or noncounterbalancing will be explained:

Q: For each of the following independent scenarios, indicate the effect of the error (if any) on:

A: Step 1 Journal is the part of book keeping.

Q: tests of controls which are by their nature also detailed tests of balance

A: Test of controls is a part of auditing. It is usually conducted at the beginning of the audit.

Q: How are errors corrected if they're not properly accounted for?

A: The errors can happen as all the things are human oriented. The error can happen as the process of…

Q: It’s not easy sometimes to distinguish between a change in principle and a change in estimate. In…

A: Definition:   Accounting changes: Accounting changes are the alterations made to the accounting…

Q: have a follow-up question. For parts a, b, and c are each of the calculations favorable or…

A: Variance which generates high revenue or low expenses are favourable variance. And variance which…

Q: Distinguish between a fictitious transaction and an artificial transaction?

A: The difference between fictitious transaction and an artificial transaction is based on the…

Q: Which of the following statements is not correct?

A: Leave monetization is actually the leave encashment which means the if there is any earned leaves…

Q: Which one of the following statements is INCORRECT?

A: Statement (2) is correct as under FIFO method, the earlier goods purchased would be comparatively…

Q: How does accounting for permanent differences less complex than is accounting for temporary…

A: Temporary Difference:   A temporary difference is the difference of an income recognized under the…

Q: Distinguish between counterbalancing and noncounterbalancing errors. Give an example of each.

A: Difference:Counterbalancing errors are the type of errors that cancels out or equalize other error…

Q: Test of details of balances involves direct testing of the ending balances.  TRUE OR FALSE? WHY?

A: Introduction:- Tests of details means verifying and obtaining audit evidence on the actual details…

Q: Which of the following statements is NOT correct?

A: The yield of the bond refers to the return that investors will realize on investment when the…

Q: What is the unadjusted trial balance?

A: Trial balance is the summary of all general ledger accounts being used in the business. It shows…

Q: If you approach a decision in the spirit of 'trial and error', you often O a. irreversible Ob. O b.…

A: A type of learning in which the organism successively tries various responses in a situation,…

Q: If the trial balance does not balance, the preparer should check to see if the difference is evenly…

A: Transposition error: Transposition error occurs when the two digits of the amount that is entered…

Q: The concept of reasonable assurance recognizes that the cost of internal control should not exceed…

A: Internal control would seem to be a method created by an institution or university's governing…

Q: Distinguish between counterbalancing and non-counterbalancing errors. Give an example of each.

A: Distinguish between counterbalancing and non-counterbalancing errors. Give an example of each.…

Q: Which of the following is not a contributory factor towards faithful representation? A. Freedom…

A: Faithful representation is the qualitative characteristics of financial statements that enhance…

Q: What does it mean for a source to be objective?

A: Objective means anything which is free from emotions, personal prejudices or bias.

Q: Which is an error of omission

A: Accounting error is error in entering, computing, and analysis of data. This includes the recording…

Q: Give two examples of errors of commission?

A: Accounting error: Accounting errors can be defined as omission of the fundamental accounting…

Q: Explain the errors in trial balance.

A: Trial balance:   A trial balance is the summary of all the ledger accounts. The trial balance is…

Q: Counter balancing error is sometimes referred to as: which of the following? a Compensating errors…

A: Rectification entry means where some error has been done in past and we need to rectify that errors.…

Q: What exactly are temporary differences? What types of transactions cause these differences?

A: Discrepancies among the carrying value of an asset or liability in the financial statements and its…

Q: Are you concerned about high deficits? Why are why not?

A: Yes, I am concerned about high deficits. Lets take an example of Fiscal deficit. A government…

Q: Which of the following statement/s are incorrect?

A: Liability: Liability: Amount of money or fund entity owns to pay outside or within the organization.…