AIPBl Masteringl Correctionsl ofl Accountingl Errorsl Examl (Latestl 2025/l 2026l Update)l Questionsl &l Answers|l Gradel A|l 100%l Correctl (Verifiedl Solutions)
Q:l Thel Allowancel forl Doubtfull Accountsl ...l
a.l hasl al normall debitl balance b.l hasl al normall creditl balance c.l appearsl onlyl onl thel post-closingl triall balance d.l anyl ofl thel above
Answer:
b.l hasl al normall creditl balance
Q:l Whichl ofl thel followingl mightl producel anl accountl balancel thatl isl notl normal?
a.l underpaymentl ofl anl accountl payable b.l overpaymentl ofl anl accountl receivablel byl al customer c.l underaccruall ofl interestl expense d.l nonel ofl thel above
Answer:
b.l overpaymentl ofl anl accountl receivablel byl al customer
Q:l Inl al triall balance,l ifl thel totall debitsl dol notl equall thel totall creditsl andl thel differencel isl divisiblel byl 2,l thel errorl couldl bel thel resultl ofl ...l
a.l addingl orl deletingl onel orl morel zerosl tol orl froml anl amount b.l reversingl twol digits c.l omittingl anl accountl balance d.l showingl al debitl balancel asl al creditl orl al creditl balancel asl al debit 1 / 4
Answer:
d.l showingl al debitl balancel asl al creditl orl al creditl balancel asl al debit
Q:l Earlyl inl 20X2,l whilel thel 20X1l booksl arel stilll open,l youl arel informedl thatl 20X1l Advertisingl Expensel includesl $90,000l forl printingl catalogsl forl al campaignl tol beginl inl January,l 20X2l andl thatl al $50,000l invoicel forl televisionl commercialsl shownl inl December,l 20X1l wasl debitedl tol 20X2l Advertisingl Expense.l
Thel correctingl entryl tol recordl asl ofl Decemberl 31,l 20X1l isl ...l
a.l al netl debitl tol Advertisingl Expensel ofl $50,000l b.l al netl creditl tol Advertisingl Expensel ofl $40,000 c.l al netl creditl tol Advertisingl Expensel ofl $90,000 d.l al netl creditl tol Advertisingl Expensel ofl $140,000
Answer:
b.l al netl creditl tol Advertisingl Expensel ofl $40,000
Q:l Usel thel followingl informationl tol answerl questionsl 20l andl 21.l
Onl Januaryl 1,l 20X1l CleanCol creditedl Revenuel forl al $4,000l prepaymentl itl receivedl froml al customerl forl maintenancel servicesl tol bel providedl overl thel nextl twol years.l
Ifl Revenuel isl notl adjustedl asl ofl Decemberl 31,l 20X1...l
a.l assetsl willl bel overstatedl byl $2,000l b.l netl incomel willl bel understatedl byl $2,000l c.l revenuel willl bel overstatedl byl $2,000l d.l retainedl earningsl willl bel understatedl byl $2,000
Answer:
c.l revenuel willl bel overstatedl byl $2,000
Q:l Anl adjustingl entryl isl necessaryl asl ofl Decemberl 31,l 20X1l tol properlyl reflectl ...l
a.l thel ledgerl Cashl accountl balance b.l deferredl revenue c.l correctionl ofl thel expensel accruall 2 / 4
d.l accruall ofl expense
Answer:
b.l deferredl revenue
Q:l Usel thel followingl informationl tol answerl questionsl 22-24.l
Onl Julyl 1,l 20X0,l CriCol takesl outl anl 10%,l $10,000l notel payablel thatl isl duel onl Julyl 1,l 20X1.l Nol interestl isl accruedl atl year-endl 20X0.l
Ifl thel errorl isl notl discoveredl untill Julyl 1,l 20X1l ...l
a.l itl willl requirel al priorl periodl adjustment b.l itl willl requirel al currentl periodl adjustment c.l itl willl requirel bothl al andl b d.l itl willl requirel nol correction
Answer:
a.l itl willl requirel al priorl periodl adjustment
Q:l Ifl nol correctionsl arel made,l whichl ofl thel followingl statementsl isl correct?l
a.l Onl CriCo'sl 20X0l incomel statement,l netl incomel isl understatedl byl $500l b.l Onl CriCo'sl 20X0l incomel statement,l netl incomel isl overstatedl byl $500l c.l Onl CriCo'sl 20X0l balancel sheet,l retainedl earningsl isl understandl byl $500l d.l Onl CriCo'sl 20X0l balancel sheet,l liabilitiesl arel overstatedl byl $500
Answer:
b.l Onl CriCo'sl 20X0l incomel statement,l netl incomel isl overstatedl byl $500
Q:l Tol correctl thisl errorl inl 20X0l youl needl tol recordl justl thel adjustingl entryl thatl wasl notl madel because...l
a.l anl expensel accountl isl involved b.l nol errorl wasl madel recordingl thel notel payablel onl Julyl 1,l 20X0l c.l anl accruall isl involvedl ratherl thanl al deferrall d.l thel booksl havel notl beenl closed
Answer: 3 / 4
d.l thel booksl havel notl beenl closed
Q:l Ifl al checkl writtenl byl thel companyl isl recordedl forl thel wrongl amount,l thel errorl isl likelyl tol bel foundl becausel ...l
a.l thel traill balancel willl bel outl ofl balancel byl anl amountl divisiblel byl 9 b.l thel traill balancel willl bel outl ofl balancel byl anl amountl divisiblel byl 2l c.l thel bankl reconciliationl willl bel outl ofl balancel whenl thel checkl clears d.l thel balancel sheetl willl bel outl ofl balance
Answer:
c.l thel bankl reconciliationl willl bel outl ofl balancel whenl thel checkl clears
Q:l Onl Octoberl 1,l 20X1,l MarCol signsl al one-year,l 8%l notel payablel forl $10,000l withl principlel andl interestl duel onl Octoberl 1,l 20X2.l Itl isl MarCo'sl onlyl notel outstanding.l Onl Octoberl 1,l 20X2l whenl thel notl isl paid,l MarCol debitsl Notesl Payablel andl creditsl Cashl forl $10,800l thel suml ofl principlel andl interest.l Thisl errorl isl likelyl tol bel foundl becausel ...l
a.l thel bankl reconciliationl willl bel outl ofl balancel whenl thel checkl clears b.l thel traill balancel willl bel outl ofl balancel byl $800l c.l thel traill balancel willl showl al balancel inl Notesl Payablel thatl isl notl normall d.l interestl expensel willl bel understated
Answer:
b.l thel traill balancel willl bel outl ofl balancel byl $800
Q:l Whilel writingl al checkl forl $2,000l onl Aprill 26,l 20X2l forl al computerl purchasedl onl Decemberl 26,l 20X1,l youl discoverl thatl whenl thel purchasel wasl madel inl December,l thel $2,000l hadl beenl creditedl tol Notesl Payablel insteadl ofl Accountsl Payable.l Ifl thel booksl arel closed,l whatl singlel entryl couldl youl make?l
a.l Notesl Payablel 2,000 l Accountsl Payablel 2,000l
b.l Notesl Payablel 2,000 l Cashl 2,000
C.l Accountsl Payablel 2,000l
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