Errors and Suspense account Flashcards
1
Q
What are the 6 errors?
A
Error of commission Error of omission Error of principles Error of complete reversal Error of original entry Compensating error
2
Q
When should we make a suspense account?
A
When the error can not be identified as one of the 6 errors.
3
Q
Error of commission and how to fix.
A
Different person/ wrong account. Subtract wrong account, add correct account
4
Q
Error of omission and how to fix
A
Data not entered/looked over. Add the correct account.
5
Q
Error of complete reversal and how to fix
A
Dr and Cr is upside down. HAVE to be DOUBLED!
6
Q
Error of principle
A
Wrong class of account (AssLiaCap ≠ income stat)
7
Q
Error of original entry
A
Dr and Cr incorrect enter amount, if it states only “entry” means only one acct but if it is “entries” it is two.
8
Q
Compensating error
A
the one where u can do a slick maneuver.
