AIPB Mastering Correction of
Accounting Errors Test Review (Latest
Update ) Questions &
Answers | Grade A | 100% Correct
(Verified Solutions)
Error Identification and Types
1. What is an error of principle?
Answer: Recording a transaction against accounting principles
Rationale: For example, capitalizing a repair expense violates GAAP.
2. A $450 payment was recorded as $540. What type of error is this?
Answer: Transposition error
Rationale: The digits 4 and 5 were swapped.
3. What indicates a possible slide error in a trial balance?
Answer: A difference divisible by 10, 100, or 1,000
Rationale: Slide errors involve decimal point misplacement.
4. A $1,200 expense was recorded as revenue. What type of error is this?
Answer: Classification error
Rationale: The transaction was posted to the wrong account type.
5. What is an error of omission?
Answer: Failing to record a transaction entirely
Rationale: This does not affect trial balance equality.
, 6. A $600 sale was recorded twice. What type of error is this?
Answer: Doubling error
Rationale: The transaction was duplicated in the ledger.
7. How can you detect a classification error?
Answer: Review account balances for unusual entries
Rationale: For example, an expense in an asset account is suspicious.
8. What is a common cause of errors not affecting trial balance?
Answer: Posting to the wrong account with equal debits and credits
Rationale: The trial balance still balances despite the error.
9. A $2,000 purchase was recorded as $200. What is the correction?
Answer: Debit Asset or Expense $1,800, Credit Cash or Payable $1,800
Rationale: This corrects the under-recorded amount.
10. What is the normal balance of Accounts Payable?
Answer: Credit balance
Rationale: Liabilities typically have credit balances.
Bank Reconciliations
11. What is the first step in a bank reconciliation?
Answer: Compare the bank statement to the ledger Cash account
Rationale: This identifies discrepancies to adjust.
12. A $300 outstanding check is included in which balance?
Answer: Deducted from the bank balance
Rationale: Outstanding checks reduce the bank’s available balance.
Accounting Errors Test Review (Latest
Update ) Questions &
Answers | Grade A | 100% Correct
(Verified Solutions)
Error Identification and Types
1. What is an error of principle?
Answer: Recording a transaction against accounting principles
Rationale: For example, capitalizing a repair expense violates GAAP.
2. A $450 payment was recorded as $540. What type of error is this?
Answer: Transposition error
Rationale: The digits 4 and 5 were swapped.
3. What indicates a possible slide error in a trial balance?
Answer: A difference divisible by 10, 100, or 1,000
Rationale: Slide errors involve decimal point misplacement.
4. A $1,200 expense was recorded as revenue. What type of error is this?
Answer: Classification error
Rationale: The transaction was posted to the wrong account type.
5. What is an error of omission?
Answer: Failing to record a transaction entirely
Rationale: This does not affect trial balance equality.
, 6. A $600 sale was recorded twice. What type of error is this?
Answer: Doubling error
Rationale: The transaction was duplicated in the ledger.
7. How can you detect a classification error?
Answer: Review account balances for unusual entries
Rationale: For example, an expense in an asset account is suspicious.
8. What is a common cause of errors not affecting trial balance?
Answer: Posting to the wrong account with equal debits and credits
Rationale: The trial balance still balances despite the error.
9. A $2,000 purchase was recorded as $200. What is the correction?
Answer: Debit Asset or Expense $1,800, Credit Cash or Payable $1,800
Rationale: This corrects the under-recorded amount.
10. What is the normal balance of Accounts Payable?
Answer: Credit balance
Rationale: Liabilities typically have credit balances.
Bank Reconciliations
11. What is the first step in a bank reconciliation?
Answer: Compare the bank statement to the ledger Cash account
Rationale: This identifies discrepancies to adjust.
12. A $300 outstanding check is included in which balance?
Answer: Deducted from the bank balance
Rationale: Outstanding checks reduce the bank’s available balance.
