AIPB - Mastering Corrections of Accounting Exam Questions With Correct Answers.

AIPB - Mastering Corrections of Accounting
Exam Questions With Correct Answers

While |reviewing |a |trial |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 |- |CORRECT |ANSWER✔✔-
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 |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-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 |only

d. |subtracted |from |the |bank |balance |and |added |to |the |ledger |Cash |account |balance |- |
CORRECT |ANSWER✔✔-b. |added |to |the |ledger |Cash |account |balance |only



The |bank |statement |balance |of |$7,000 |does |not |include |a |check |outstanding |of |$1,000, |a |
deposit |in |transit |of |$275, |and |another |company's |$250 |check |erroneously |charged |against |
your |firm's |account. |The |reconciled |bank |balance |is:



a. |$6,375 |

b. |$6,580 |

c. |$6,525 |

d. |$6,570 |- |CORRECT |ANSWER✔✔-c. |$6,525



You |are |doing |a |bank |reconciliation |for |May, |20Xl. |You |have |a |$2,785 |unadjusted |ledger |cash |
balance |and |the |following |data:

• |Outstanding |checks: |No. |719, |$200; |No. |727, |$800; |No. |732, |$625

• |Deposits |in |transit, |$1,200

• |Check |No. |742 |(for |repairs) |written |for |$505 |but |incorrectly |recorded |as |$550

• |NSF |check |from |a |customer, |$500

• |Bank |service |charge |for |May, |$5

• |Balance |per |bank |statement, |$2,750

, What |dollar |amount |should |be |deducted |from |the |balance |per |bank |statement?



a. |$1,425 |

b. |$1,625 |

c. |$505 |

d. |$2,125 |- |CORRECT |ANSWER✔✔-b. |$1,625



You |are |doing |a |bank |reconciliation |for |May, |20Xl. |You |have |a |$2,785 |unadjusted |ledger |cash |
balance |and |the |following |data:

• |Outstanding |checks: |No. |719, |$200; |No. |727, |$800; |No. |732, |$625

• |Deposits |in |transit, |$1,200

• |Check |No. |742 |(for |repairs) |written |for |$505 |but |incorrectly |recorded |as |$550

• |NSF |check |from |a |customer, |$500

• |Bank |service |charge |for |May, |$5

• |Balance |per |bank |statement, |$2,750



What |dollar |amount |should |be |deducted |from |the |balance |per |books?



a. |$460 |

b. |$505 |

c. |$550 |

d. |$1,625 |- |CORRECT |ANSWER✔✔-b. |$505



You |are |doing |a |bank |reconciliation |for |May, |20Xl. |You |have |a |$2,785 |unadjusted |ledger |cash |
balance |and |the |following |data:

• |Outstanding |checks: |No. |719, |$200; |No. |727, |$800; |No. |732, |$625