Chapter 7 Flashcards
Errors that do not lead to an imbalance in the trail balance
Error of omission
Error of original entry
Error of commission
Error of principle
Reversal of entries
Compensating errors
What error of omission
Both debit and credit gave been omitted from the ledger accounts
What is error of original entry
Both the debit and credit entries in the ledger have been made at the wrong amount
What is error of commission
The double entry is arithmetically correct but one of the entries has been made to the wrong account, through an account type error
What is error of principle
The error is arithmetically correct but one of the entries has been to the wrong type of account
What is reversal of entires
The debit and credit entries have been reversed in the ledger accounts
What is compensating error
Two or more separate errors have been made that completely cancel each other out
What are the errors lead to an unbalance in the trail balance
Single entry transactions
Two debits/two credits error
Unequal amounts error
Calculation error
Balance transfer error
Balance omission
Transposition error
Suspense account
What is single entry transaction
Only one side the double entry has been made
What is two debits / two credit error
Instead of a debit and credit entry made, two entries will be made to debit or credit
What is unequal amounts error
Debit and credit entries have been made for different amounts
What is calculation error
A mistake is made calculating the balance on a ledger account
What is balance transfer error
A balance On a general ledger account is transferred incorrectly into the trail balance
What is balance omission
A ledger account balance has been left off the trail balance completely
What is transposition error
The digits in a number are swapped around
