ICAEW CFAB ACCOUNTING (AG) - end ch. 6

A credit purchase of goods $1200 from Calvin trading was recorded in Clara trading account. Name the error.

• Compensating error

• Error of commission

• Error of principle

• Error of omission

A cheque payment of $500 for rent was not recorded. Name the error.

• Error of omission

• Error of principle

• Compensating error

• Error of commission

Both salaries expense and commission income were overstated by $900. State the correction of error.

• Dr salaries expense cr commission income

• Dr Capital Cr salaries exp

• Dr commission income Cr salaries expense

When there is error with credit entry not equal to credit entry,

• there is no suspense account

• trial balance will not agree

• supense account will be appeared

• trial balance will agree

A suspense account is used to rectify?

• Errors affecting trial balance agreement

• Errors not affecting trial balance agreement

• None of these

• Both types of errors

A cash deposit made by business appears on the bank statement as _______ balance.

• Liabilities

• Expenses

• Credit

• Debit

If the final balance in the bank statement is $3900 Cr, unpresented cheques equal $500 and outstanding deposits total $900, the final balance in the business's bank account is:

• $4300 Dr

• $3500 Cr

• $3500 Dr

• $4300 Cr

What do we call a cheque that the bank refused to pay the payee because the drawer has insufficient funds in his current account?

• Dishonoured cheque

• Dubious cheque

• Stale cheque

• Sad cheque

Which of the following is already recorded in the Cash at Bank account but not in the Bank Statement?

• Bank charges

• Direct deposit

• Uncredited cheque

• Dishonoured cheque

what to be recorded for updating cash book? (more than 1 answer)

• bank interest

• uncredited amount

• bank charge

• standing order

• bank error