Errors That Affect The Trial Balance - SS1 Accounting Past Questions and Answers - page 1
What is an error of omission in accounting that affects the trial balance?
Recording an incorrect amount for a transaction
Recording a transaction in the wrong accounting period
Completely leaving out a transaction from the accounting system
Recording a transaction twice
Which type of error in accounting affects the trial balance by recording an incorrect amount for a transaction?
Errors of omission
Errors of commission
Errors of principle
Errors of reversal
Which type of error in accounting affects the trial balance by recording an incorrect amount for a transaction in the original accounting record?
Errors of omission
Errors of commission
Errors of principle
Errors in the original entry
Which type of error in accounting affects the trial balance by recording a transaction in the wrong accounting period?
Errors of omission
Errors of commission
Errors of principle
Errors of timing
Why is it important to identify and correct any errors that affect the trial balance?
To ensure the accuracy of financial information
To increase profits
To reduce expenses
To improve employee morale
What is the purpose of the trial balance in accounting?
The purpose of the trial balance in accounting is to ensure that the total debits equal the total credits in the system, which means that the accounting equation (assets = liabilities + equity) is in balance.
How can an imbalance in the trial balance affect a company's financial statements?
An imbalance in the trial balance can lead to inaccurate financial statements and misrepresentations of a company's financial position.