AIPB Mastering Corrections of Accounting Errors Questions with Complete Correct Answers | Grade A+

While reviewing a trail balance, you notice the following account balances. Which one is likely to be an error? a. Inventory with a debit balance of $43,000 b. Discount on Bonds Payable with a debit balance of $4,000 c. Accumulated Depreciation with a debit balance of $8,000 d. Allowance for Doubtful Accounts with a credit balance of $23,000 Ans: c. Accumulated Depreciation with a debit balance of $8,000 Debiting an insurance payment to Rent Expense instead of Insurance Expense is an example of .... a. an accrual error b. a deferral error c. a classification error d. use of an incorrect accounting principle Ans: c. a classification error InCo. recorded a customer's $20,000 check as a $20,000 debit to Cash and as a $2,000 credit to Accounts Receivable. This is an example of .... a. an oversight b. an incorrect account classification c. a transposition error d. a slide error Ans: d. a slide error During a bank reconciliation, a deposit recorded by the bank but not in the company's ledger Cash account is ... a. added to both the bank balance and the ledger Cash account balance b. added to the ledger Cash account balance only c. added to the bank balance onl