AIPB
AIPB Mastering Correction of Accounting
Errors Exam Questions with Verified
Answers 2025
failing to record an event, such as not recording a return of merchandise -Correct
Answer ✔Omission
Such as accruing or deferring the wrong amount or failing to make the accrual or
deferral -Correct Answer ✔Accrual or Deferral error
Such as debiting a rent payment to Insurance Expense instead of to Rent Expense -
Correct Answer ✔Classification error
such as an incorrect total on an inventory tally sheet -Correct Answer ✔Arithmetic
mistake
such as expensing an equipment purchase instead of capitalizing it -Correct
Answer ✔Use of an Incorrect accounting principle
such as using an allowance for doubtful accounts estimate of 2% of sales when it
should be 4% of sales -Correct Answer ✔Use of an improper estimate
(reversal of two digits in a number) such as recording $83 as $38 -Correct Answer
✔Transposition
(the decimal point has been put in the wrong place), such as recording $250 as $25
or as $2500 -Correct Answer ✔Slide
such as crediting Cash for a sale instead of debiting it -Correct Answer ✔Posting
error
Internal accounting controls...
AIPB
, AIPB
a. are part of every company's accounting system
b. prevent accounting errors
c. guarantee reliable accounting information
d. help to ensure the reliability of accounting information -Correct Answer ✔d
Which of the following is not used to detect accounting errors?
a. monthly bank reconciliations
b. prior period adjustments
c. monthly trial balances
d. internal audits -Correct Answer ✔b
If depreciation expense of $1,000 is posted as $100, this is...
a. a transposition error
b. a classification error
c. a slide error
d. use of an incorrect accounting principle -Correct Answer ✔c
If a company calculates bad expense at 1% of sales byt the percentage used was
5% of sales, this is...
a. a transposition error
b. use of an improper estimate
c. a slide error
d. use of an incorrect accounting principle -Correct Answer ✔b
SiliCo painted its building at a cost of $10,000 and decided to capitalize it (debit
Buildings), instead of expensing it (debit Repairs and Maintenance Expense). This
is...
a. a transposition error
b. a classification error
c. an improper estimate
d. use of an incorrect accounting principle -Correct Answer ✔d
A $300 payment of an electric bill debited to Cash is a(n) _____ error. -Correct
Answer ✔posting
AIPB
AIPB Mastering Correction of Accounting
Errors Exam Questions with Verified
Answers 2025
failing to record an event, such as not recording a return of merchandise -Correct
Answer ✔Omission
Such as accruing or deferring the wrong amount or failing to make the accrual or
deferral -Correct Answer ✔Accrual or Deferral error
Such as debiting a rent payment to Insurance Expense instead of to Rent Expense -
Correct Answer ✔Classification error
such as an incorrect total on an inventory tally sheet -Correct Answer ✔Arithmetic
mistake
such as expensing an equipment purchase instead of capitalizing it -Correct
Answer ✔Use of an Incorrect accounting principle
such as using an allowance for doubtful accounts estimate of 2% of sales when it
should be 4% of sales -Correct Answer ✔Use of an improper estimate
(reversal of two digits in a number) such as recording $83 as $38 -Correct Answer
✔Transposition
(the decimal point has been put in the wrong place), such as recording $250 as $25
or as $2500 -Correct Answer ✔Slide
such as crediting Cash for a sale instead of debiting it -Correct Answer ✔Posting
error
Internal accounting controls...
AIPB
, AIPB
a. are part of every company's accounting system
b. prevent accounting errors
c. guarantee reliable accounting information
d. help to ensure the reliability of accounting information -Correct Answer ✔d
Which of the following is not used to detect accounting errors?
a. monthly bank reconciliations
b. prior period adjustments
c. monthly trial balances
d. internal audits -Correct Answer ✔b
If depreciation expense of $1,000 is posted as $100, this is...
a. a transposition error
b. a classification error
c. a slide error
d. use of an incorrect accounting principle -Correct Answer ✔c
If a company calculates bad expense at 1% of sales byt the percentage used was
5% of sales, this is...
a. a transposition error
b. use of an improper estimate
c. a slide error
d. use of an incorrect accounting principle -Correct Answer ✔b
SiliCo painted its building at a cost of $10,000 and decided to capitalize it (debit
Buildings), instead of expensing it (debit Repairs and Maintenance Expense). This
is...
a. a transposition error
b. a classification error
c. an improper estimate
d. use of an incorrect accounting principle -Correct Answer ✔d
A $300 payment of an electric bill debited to Cash is a(n) _____ error. -Correct
Answer ✔posting
AIPB
