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Understanding Accounting Errors and Processes

Learn about common accounting errors, different accounting periods like fiscal and calendar year, ledger management, and the accounting cycle. Enhance your knowledge with terms like trial balance, source documents, and more!

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Understanding Accounting Errors and Processes

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  1. Errors discovered after posting has taken place require Changing entry Correcting entry Fixing it Don’t make mistakes

  2. A(N) ______ is an accounting period of 12 months ending on the last day of any month except Decembera. Calendar yearb. Fiscal Yearc. Memorandumd. leap year

  3. Whether accounts are kept manually in a special file or electronically or magnetic disks or tapes, the ledger is often called a(n) _________________ A. ledger B. General ledger C. Ledger account form D. Journal

  4. If you were to write $190 as either $19 or $1,900, this mistake would be called a(n) ________ • Transposition error • Slide Error • Stupid • Correcting Entry

  5. A(n) _____________ accounting period begins on January 1 and end on December 31. • A. Fiscal Year • B. Calendar Year • C. Leap year • D. I can’t believe I don’t know this

  6. The various activities a business completes to organize its accounting records in an orderly fashion is called the ________ • A. source document • B. Journalizing • C. Accounting Cycle • D. Trial balance

  7. A periodic report prepared by a business to test the equality of total debits and total credits in the ledger is called a(n) _____ • A. trial balance • B. general journal • C. journalizing • D. posting

  8. A ____________ is often called a book of original entry. • A. Journal • B. General Journal • C. Ledger • D. general ledger

  9. Another term used for “recording” a business transaction is __________ • A. posting • B. journalizing • C. correcting • D. proving

  10. Adding all the debit balances and all the credit balances and then comparing the two totals to see whether they are equal is called _______ • A. posting to the journal • B. journalizing • C. Proving the ledger • D. Proving the journal

  11. The ______ is an all purpose journal used for recording business transactions. • A. General Journal • B. Invoice • C. Memorandum • D. General Ledger

  12. A(N) ____________ is any type of business paper that verifies that a transaction occurred. • A. memorandum • B. Receipt • C. Invoice • D. Source Document

  13. In order to help an owner or manager know the financial condition of a business, accounting records are kept and reported for a certain period of time called an accounting period. • A. true • B. false

  14. Dollar signs, commas, and decimals are not used when entering amounts in the journal. • A. true • B. false

  15. Never erase an error in a journal entry because an erasure looks suspicious. • A. true • B. false

  16. To verify a source document means to check the accuracy of the information on it. • A. true • B. false

  17. A fiscal period may be one month, three months, six months, or even one year, but usually it is one year. • A. true • B. false

  18. To record transactions in chronological order means to record them according to the date on which they occurred. • A. true • B. false

  19. Recording transactions is the second step in the accounting cycle. • A. true • B. false

  20. A journal is like a diary of a business because events are recorded in chronological order. • A. true • B. false

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