AIPB-MASTERING CORRECTIONS OF ACCOUNTING ERRORS EXAM STUDY GUIDE WITH COMPLETE 250 QUESTIONS AND CORRECT DETAILED SOLUTIONS JUST RELEASED THIS YEAR

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AIPB - MASTERING CORRECTIONS OF
ACCOUNTING ERRORS EXAM THIS YEAR WITH
250 QUESTIONS AND WELL ELABORATED
ANSWERS JUST RELEASED


QUESTION: Which of the following is not an accounting error?

a. failure to post an entry to the proper account

b. failure to post the proper amount to an account

c. failure to record a customer's payment

d. failure to record that a bill has been contested by a customer - ANSWER✔✔d. failure to
record that a bill has been contested by a customer




QUESTION: Your company's payment of $500 was debited to Cash. This is ...

a. a posting error

b. a classification error

c. an arithmetic mistake

d. a slide - ANSWER✔✔a. a posting error




QUESTION: A rent payment check issued for $450 was recorded as a credit to Cash for $540.
This is ...

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a. a slide

b. an incorrect account classification

c. an arithmetic mistake

d. a transposition error - ANSWER✔✔d. a transposition error




QUESTION: CabotCo's accountant forgot to record annual interest expense. This is ...

a. a transposition error

b. an arithmetic mistake

c. use of an incorrect accounting principle

d. an accrual error - ANSWER✔✔d. an accrual error




QUESTION: Internal accounting controls ...

a. are part of every company's accounting system

b. prevent accounting errors

c. guarantee reliable accounting information

d. help to ensure the reliability of accounting information - ANSWER✔✔d. help to ensure the
reliability of accounting information




QUESTION: Which of the following is not used to detect accounting errors?

a. monthly bank reconciliations

b. prior period adjustments

c. monthly trial balances

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d. internal audits - ANSWER✔✔b. prior period adjustments




QUESTION: If depreciation expense of $1,000 is posted as $100, this is ...

a. a transposition error

b. a classification error

c. a slide error

d. use of an incorrect accounting principle - ANSWER✔✔c. a slide error




QUESTION: If a company calculates bad debt expense at 1 % of sales but the percentage used
was 5% of sales, this is ...

a. a transposition error

b. use of an improper estimate

c. a slide error

d. use of an incorrect accounting principle - ANSWER✔✔b. use of an improper estimate




QUESTION: SiliCo painted its building at a cost of $10,000 and decided to capitalize it (debit
Buildings), instead of expensing it (debit Repairs and Maintenance Expense). This is ...

a. a transposition error

b. a classification error

c. an improper estimate

d. use of an incorrect accounting principle - ANSWER✔✔d. use of an incorrect accounting
principle

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QUESTION: 1A $300 payment of an electric bill debited to Cash is a(n) ________________ error.
- ANSWER✔✔posting




QUESTION: The correction of an error is determined by which _______ are affected and
_______ the error was found. - ANSWER✔✔accounts; when




QUESTION: The _________ ____________ helps to reveal errors by verifying that total
____________ _______________ debits and credits are in balance. - ANSWER✔✔trial balance;
ledger accounts



QUESTION: Errors may be uncovered in the year-end financial audit by the _______________
_____________________. - ANSWER✔✔external error




QUESTION: List three routine accounting procedures during which accounting errors may be
discovered.

1. __________________________________________

2. _________________________________________

3. _________________________________________ - ANSWER✔✔Any 3 of the following 5 are
correct

1. monthly bank reconciliation

2. preparation of the trial balance

3. review of periodic adjustments to the accounts