Chapter 11 - The Trial Balance, Errors, and the Suspense Account Flashcards
What is the Initial Trial Balance?
A list of ledger balances shown in debit and credit columns (total debits = total credits).
What is the Suspense Account?
A temporary account set up to make the trial balance balance.
What is an Error of Omission?
Both sides of a transaction have been completely left out.
What is an Error of Original Entry?
Where debits = credits, but the amount is incorrect.
What is a Reversal of Entries?
Where the transaction is recorded at the correct amount, but the debit and credit entries have been reversed.
What is an Error of Principle?
Where debits = credits, but one of the entries has been posted to the wrong type of account.
What is an Error of Commission?
Where debits = credits but one entry has been made to the wrong account, but not wrong type of account.
