Week 3 - Lecture Flashcards
What’s the accounting equation?
Assets - Liabilities
What’s DEAD CLIC?
Debit
- Expenses
- Assets
- Drawings
Credit
- Liabilities
- Income
- Capital
What’re the errors called whereby the trial balance will still balance?
OCPCOR errors.
What’s omission?
When the error isn’t recorded at all.
What’s comission?
Error posted to the wrong account but same type.
PPE instead of machinery.
What’s the principle error?
Conceptually recorded incorrectly.
What’s the compensating error?
Two or more errors which cancel each other out.
What’s the original entry error?
Correct entry and wrong amount.
What’s the reversal error?
DR and CR the wrong way around.
What’s the errors whereby the trial balance won’t balance anymore?
PUPAT errors.
What’s the Posting error?
One side of a transaction that is posted to the wrong side of an account.
What’s the Unequal Posting error?
When the debit doesn’t equal the credit.
What’s the partial omission error?
One side of the transaction is not posted.
What’s the Addition error?
Overcasting/undercasting in totalling a day book/account or incorrect calculation of bal bd/cd on an account.
What’s the Transposition error?
The correct numbers but in the wrong order eg. 750 -> 570.
