Trial Balance

Question 1

What is a trial balance?

Answer 1

-produced by extracting all b/d balances from T accounts and listing them as a Dr or Cr

Question 2

What can you do if you have errors in your TB?

Answer 2

-divide difference by 9 = exact = transposition error
-divide difference by 2 = look for the difference

Question 3

What errors will a TB not identify?

Answer 3

-omission
-compensating
-original entry
-reversal
-commission
-principle

Question 4

What is a transposition error?

Answer 4

-posting the amount on the wrong side of the account

Question 5

What is a commission error?

Answer 5

-posting an amount to the wrong account but the correct type of account

Question 6

What is a compensating error?

Answer 6

-posting the wrong amount to both accounts

Question 7

What is an omission error?

Answer 7

-forgetting to make an entry

Question 8

What is a calculation error?

Answer 8

-incorrect amount on b/d balance

Question 9

What is a principle error?

Answer 9

-posted to the wrong account and wrong account type

Question 10

What is an error of original entry?

Answer 10

-recording the incorrect amount to start with