Term
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Definition
| Incorrect recording and repoting of facts about the business that existed at the time an event or transaction was recorded |
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Term
| Ways accounting errors are prevented |
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Definition
| basic double-entry bookkeeping, internal controls |
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Term
| How does double entry bookkeeping prevent errors |
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Definition
| Keeping books in balance by requireing debits equal credits |
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Term
| What are the types of accounting errors? |
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Definition
| Omission, accrual or deferral error, classification error, arithmetic mistake, incorrect acctng principle, improper estimate, transposition, slide, posting error |
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Term
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Definition
| Incorrect record and reporting of facts about the business that existed at the time an event or transacation was recorded |
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Term
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Definition
| Omission, Accrual or deferral error, classification error, Arithmetic mistake, Use of incorrect accounting principal, improper estimate, Transposition, Slide, Posting error |
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Term
| How are most accounting errors found? |
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Definition
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Term
| What are some routine activites where errors might be found? |
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Definition
| Monthly Bank Reconciliation, Preparation of a trial balance, Review of periodic adjustements to the accounts, routine internal audits, year end financial audit |
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Term
| How is the correction of an error determined? |
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Definition
| Which accounts are affected and when the error was found |
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Term
| How is error made in current year vs prior year corrected |
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Definition
| Just make a journal entry to correct |
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Term
| If error is prior year, how is that handled? |
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Definition
| Prior period adjustment, possibly to the beginning balance of retained earnings. |
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Term
| Internal Accounting Controls |
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Definition
| a. are part of every company's accounting system, b. prevent accounting errors, c. guarantee reliable acocunting information, d. help to ensure the reliability of accounting information |
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Term
| Which of the following is NOT used to dected accounting errors? |
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Definition
| a. monthly bank reconciliations, b. prior period adjustments, c. monthly trial balances, d. internal audits |
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Term
| If depreciation expense of $1,000 is posted as $100 this is: |
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Definition
| a. a transposition error, b. a classification error, c. a slide error, d. use of an incorrect accounting principal |
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Term
| If a company calculates bad debt expense at 1% of sale but the % used was 5% of sales this is |
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Definition
| a. a transposition error, b. use of an improper estimate, c. a slide error, d. use of an incorrect accounting principle |
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Term
| SiliCo painted it's building at a cost of $10,000 and decided to capitalize instead of expense This is |
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Definition
| a. a transposition error, b. a classification error, c. an improper estimate, d. use of an incorrect accounting principle |
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Term
| A $300 payment of an electric bil debited to Cash is a |
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Definition
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Term
| The correction of an error is determined by which ? Affected and ? The error was found |
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Definition
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Term
| The ? ? Helps reveal errors by verifying that total ? ? Debits and credits are in balance |
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Definition
| Trial balance, Ledger Accounts |
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Term
| Errors may be uncovered in the year end financial audit by the ?? |
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Definition
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