Chpt 15

Question 1

Limitation of a trial balance

Answer 1

A balanced trial balance is not an absolute proof of accuracy of transactions recorded in ledger accounts because there may be errors which would not affect the balancing of the trial balance and thus would not be revealed by the trial balance.

Question 2

1 Error that could exist when a trial balance is balanced

Answer 2

A transaction is not recorded at all.

Question 3

2 Error that could exist when a trial balance is balanced

Answer 3

The wrong amount is recorded in the correct side of the correct account.

Question 4

3 Error that could exist when a trial balance is balanced

Answer 4

Transaction is recorded in the wrong account of a different accounting element.

Question 5

4 Error that could exist when a trial balance is balanced

Answer 5

Transaction is recorded in the wrong account of a same accounting element.

Question 6

5 Error that could exist when a trial balance is balanced

Answer 6

The correct amount is recorded in the wrong side of the correct accounts involved.