Page 1 of 80
AIPB-MASTERING CORRECTIONS OF
ACCOUNTING ERRORS EXAM STUDY GUIDE
WITH COMPLETE 250 QUESTIONS AND
CORRECT DETAILED SOLUTIONS JUST
RELEASED THIS YEAR
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
, Page 2 of 80
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
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
, Page 3 of 80
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: 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
d. internal audits - ANSWER✔✔b. prior period adjustments
, Page 4 of 80
QUESTION: A rent payment check issued for $450 was recorded as a credit to Cash for $540.
This is ...
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: An accounting error is defined as the incorrect _______ and ______________ of
facts about the business that existed at the time a(n) _____________ or ________________
was recorded. - ANSWER✔✔recording; reporting; event; transaction
QUESTION: Most differences between the end-of-month bank balance and cash account
balance are caused by differences in _______ . - ANSWER✔✔timing
AIPB-MASTERING CORRECTIONS OF
ACCOUNTING ERRORS EXAM STUDY GUIDE
WITH COMPLETE 250 QUESTIONS AND
CORRECT DETAILED SOLUTIONS JUST
RELEASED THIS YEAR
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
, Page 2 of 80
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
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
, Page 3 of 80
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: 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
d. internal audits - ANSWER✔✔b. prior period adjustments
, Page 4 of 80
QUESTION: A rent payment check issued for $450 was recorded as a credit to Cash for $540.
This is ...
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: An accounting error is defined as the incorrect _______ and ______________ of
facts about the business that existed at the time a(n) _____________ or ________________
was recorded. - ANSWER✔✔recording; reporting; event; transaction
QUESTION: Most differences between the end-of-month bank balance and cash account
balance are caused by differences in _______ . - ANSWER✔✔timing
