Asked by Henil Deepak Patel on May 07, 2024
Verified
The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to confirm this suspicion?
A) Determine the amount of the error and look for that amount on the trial balance.
B) Determine the amount of the error and divide by two, then look for that amount on the trial balance.
C) Determine the amount of the error and refer to the journal entries for that amount.
D) Determine the amount of the error and divide by nine. If the result is evenly divided, then this type of error is likely.
Transposition Error
A mistake made when digits within a number are inadvertently reversed or misplaced in the recording process.
Slide Error
An accounting error resulting from moving decimal points improperly in figures, not due to mathematical mistakes.
Trial Balance
A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the balance of a company's accounting system.
- Identify habitual faults in the trial balance and describe procedures for their resolution.
Verified Answer
JB
Janeth BenavidesMay 08, 2024
Final Answer :
D
Explanation :
To confirm a transposition or slide error, dividing the difference in the trial balance by nine is a common technique. If the result is a whole number, it suggests such an error has occurred, as transposition errors involve switching digits (e.g., 64 instead of 46), and slide errors involve moving the decimal place of a number, both of which will result in differences divisible by nine.
Learning Objectives
- Identify habitual faults in the trial balance and describe procedures for their resolution.