Problem #15Effects of Errors on the Trial Balancecorrectlystated in the trial balance?b. Was the total of the debit column of the trial balance overstated,understated, or correctly stated?Was the Accounts Payable account overstated, understated, or correctlystated in the trial balance?C.d. Was the total of the credit column of the trial balance overstated,understated or correctly stated?How much was the total of the debit column of the trial balance beforecorrection of the error?е.Required:Explain briefly the reasons underlying your answer and state the amount of the error, ifany.

The trial balance refers to the worksheet where the ending balance of all the accounts in the book…

Answered: Problem #15 Effects of Errors on the…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 30RQSC

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21 If the total debit balance equals the total credit balance on the trial balance, the accounting records may still contain errors. True or False
c. Assume that the unadjusted trial balance on July 31 shows a credit balance for Accounts Receivable. Does this credit balance mean an error has occurred?
Question 10 of 18 Which of the following increases the reported receivables in the financial statements? Select the correct response: a credit balance in an account payable offsetting a credit balance in an account receivable O adjustment to eliminate a debit balance in account payable a credit balance in an allowance account < Previous
2. MC.03.002 A book of original entry is known as a a. ledger account. b. trial balance. c. general ledger. d. Taccount. e. Journal. 3.MC.03.003 An accountant wanting to know the balance of a particular account would refer to the a. source document. b. chart of accounts. c. journal. d. book of original entry. e. ledger. 4.MC.03.004 The process of subtotalling both sides of an account and recording the amount on that side is known as a. Journalizing. b. footing. c. balancing the accounts. d. taking a trial balance. e. posting. 5.MC.03.005 If the number of an account is 211, this probably means that the account is the first account in the a. Liabilities section. b. Owner's Equity section. c. Revenues section. d. Expenses section. e. Assets section. 6. MC.03.006 When an entry is posted, the last step in the process is a. placing the balance of the account in either the debit or credit column in the ledger. b. placing the account number in the Post. Ref. column of the ledger. c. placing…
21.Which of the following errors will not cause the debit and credit columns of the trial balance to be unequal? a. A debit was entered in an account as a credit. b. The balance of an account was incorrectly computed. c. The account balance was carried to the wrong column of the trial balance. d. A debit entry was recorded in the wrong account.
The notes receivable is debited by the bookkeeper instead of accounts receivable. What is the effect of the error in the total assets of the entity? a. No effect b. Cannot be determined based on the given information c. Understated d. Overstated
27. A debit balance of R1 123 in the general ledger was shown in the trial balance as a credit balance of R2 123. By how much will the trial balance not balance due to the above-mentioned error? A. R3 246 B. R3 266 C. R1 000 D. R1 633
Which of the following errors will not affect the Trial balance? a. Wrong balancing of an account b. Wrong totaling of an account c. Omitting one aspect of account d. Omitting two aspect of account
A debit balance in which of the following accounts would indicate a likely error? a.Notes Payable b.Supplies c.Salaries Expense d.Accounts Receivable
The collection of customer’s account is credited to accounts payable. What is the effect of the error in the net income of the current period and in subsequent period? Group of answer choices A. Cannot be determined based on the given information B. Understated C. Overstated D. No effect
Question 9 Which one of the following accounts appears on the credit side of a pre-adjustment trial balance? Select one: a. Fixed deposit b. Interest on loan c. Bank overdraft d. Debtors control
When an uncollectible account is recovered after it has been written off, which of the following accounts will be credited in the process? O Allowance for Doubtful Accounts and Cash O Accounts Receivable and Allowance for Doubtful Accounts O Cash and Account Receivable O Allowance for Doubtful Accounts and Bad Debts Expense

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