The internal control system Reduces accounting errors II. Increases accounting errors III. Lessens the risks of intentional irregularities IV. Increases irregularities I and III and IIIII and III II and IV A suspense accounts was opened for an error of $100 found in the Trial Balance. Later it was discovered that purchases were understated by $100. This item would be corrected in the journal by Trading and Profit and Loss account Cr. Suspense account Suspense account Cr. Goods account Purchase account Cr. Suspense account Suspense account Cr. Purchases account The net profit of a firm was shown as $2 000 and it was later discovered that Discount received were under cast by $200 and purchases were understated by $150. The corrected net profit was $1 800 $1 850 (C)$1 950 (D)$2 050 The payment of wages to employees was not recorded in Joyce’s Enterprises books. What type of error is this? Error of OmissionError of CommissionError of PrincipleReversal of Entries An error was made in posting of cash sales for $2 000. The both accounts were understated by the amount. What type of error is this? Error of PrincipleError of Original EntryError of CommissionReversal of Entries Suspense account is opened when ____ does not tallyBalance sheetTrial balanceProfit and lossTrading account Which of the following is not an error of principleRepair or the over hauling of machinery purchased debited to repairs accountCash paid to Karan posted to salarySale of old car credited to sales accountPurchase of furniture debited to purchase account Which of the following is not an error of commissionWrong balancing of machinery accountCredit sales to Pawan $5,000 credited to his accountCash sales not recorded in cash bookOvercasting of sales book Which of the following error will be rectified through suspense accountPurchase return to Vishal $1,000 not recordedPurchase return to Vishal $1,000 recorded through Sales return bookPurchase return book under cast by $1,000Purchase return to Vishal $1,000 recorded as $100 Trial balance is equal from both sides but still there is some error. It indicate that:There may be one sided error in the bookThere is no error in the bookThere may be two sided error in the bookThere may be two sided and one sided error in the book If wages paid for construction of building are debited to wages account. It isAn error of OmissionAn error of compensationAn error of commissionAn error of principle Trial balance isA subsidiary bookA principle bookAn accountA statement

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The internal control system

Reduces accounting errors II. Increases accounting errors

III. Lessens the risks of intentional irregularities IV. Increases irregularities

I and II
I and III
II and III
II and IV

A suspense accounts was opened for an error of $100 found in the Trial Balance. Later it was discovered that purchases were understated by $100. This item would be corrected in the journal by

Trading and Profit and Loss account Cr. Suspense account

Suspense account Cr. Goods account

Purchase account Cr. Suspense account

Suspense account Cr. Purchases account

The net profit of a firm was shown as $2 000 and it was later discovered that Discount received were under cast by $200 and purchases were understated by $150. The corrected net profit was

$1 800

$1 850

(C)$1 950

(D)$2 050

The payment of wages to employees was not recorded in Joyce’s Enterprises books. What type of error is this?

Error of Omission
Error of Commission
Error of Principle
Reversal of Entries

An error was made in posting of cash sales for $2 000. The both accounts were understated by the amount. What type of error is this?

Error of Principle
Error of Original Entry
Error of Commission
Reversal of Entries

Suspense account is opened when ____ does not tally

Balance sheet
Trial balance
Profit and loss
Trading account

Which of the following is not an error of principle

Repair or the over hauling of machinery purchased debited to repairs account
Cash paid to Karan posted to salary
Sale of old car credited to sales account
Purchase of furniture debited to purchase account

Which of the following is not an error of commission

Wrong balancing of machinery account
Credit sales to Pawan $5,000 credited to his account
Cash sales not recorded in cash book
Overcasting of sales book

Which of the following error will be rectified through suspense account

Purchase return to Vishal $1,000 not recorded
Purchase return to Vishal $1,000 recorded through Sales return book
Purchase return book under cast by $1,000
Purchase return to Vishal $1,000 recorded as $100

Trial balance is equal from both sides but still there is some error. It indicate that:

There may be one sided error in the book
There is no error in the book
There may be two sided error in the book
There may be two sided and one sided error in the book

If wages paid for construction of building are debited to wages account. It is

An error of Omission
An error of compensation
An error of commission
An error of principle

Trial balance is

A subsidiary book
A principle book
An account
A statement

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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The internal control system Reduces accounting errors II. Increases accounting errors III. Lessens the risks of intentional irregularities IV. Increases irregularities I and II I and III II and III II and IV