AIPB
AIPB Mastering Corrections of Accounting
Errors Exam Questions and Answers
Graded A+ 2025
While reviewing a trail balance, you notice the following account balances. Which
one is likely to be an error?
a. Inventory with a debit balance of $43,000
b. Discount on Bonds Payable with a debit balance of $4,000
c. Accumulated Depreciation with a debit balance of $8,000
d. Allowance for Doubtful Accounts with a credit balance of $23,000 -Correct
Answer ✔c. Accumulated Depreciation with a debit balance of $8,000
Debiting an insurance payment to Rent Expense instead of Insurance Expense is an
example of ....
a. an accrual error
b. a deferral error
c. a classification error
d. use of an incorrect accounting principle -Correct Answer ✔c. a classification
error
InCo. recorded a customer's $20,000 check as a $20,000 debit to Cash and as a
$2,000 credit to Accounts Receivable. This is an example of ....
a. an oversight
b. an incorrect account classification
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,AIPB
c. a transposition error
d. a slide error -Correct Answer ✔d. a slide error
During a bank reconciliation, a deposit recorded by the bank but not in the
company's ledger Cash account is ...
a. added to both the bank balance and the ledger Cash account balance
b. added to the ledger Cash account balance only
c. added to the bank balance only
d. subtracted from the bank balance and added to the ledger Cash account balance -
Correct Answer ✔b. added to the ledger Cash account balance only
The bank statement balance of $7,000 does not include a check outstanding of
$1,000, a deposit in transit of $275, and another company's $250 check erroneously
charged against your firm's account The reconciled bank balance is:
a.$6,375
b.$6,580
c.$6,525
d. $6,570 -Correct Answer ✔c.$6,525
Using the following information to answer questions 6-8. You are doing a bank
reconciliation for May 20X1. You have a $2,785.00 unadjusted ledger cash balance
and the following data:
Outstanding checks: No. 719, $200, No. 727 $800, No. 732, $625
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, AIPB
Deposits in transit, $1,200
Check No. 742 (for repairs) written for $505 but incorrectly recorded as $550
NSF check from a customer, $500
Bank service charge for May, $5
Balance per bank statement, $2,750
What dollar amount should be deducted from the balance per bank statement?
a. $1,425 b. $1,625 c. $505 d. $2,125 -Correct Answer ✔1625
What dollar amount should be deducted from the balance per books?
a. $460 b. $505 c. $550 d. $1,625 -Correct Answer ✔505
What adjustment will you need to make to company books?
a. a net decrease in Cash of $550
b. a net decrease in Cash of $505
c. a net decrease in Cash of $460
d. a net increase in Cash of $45 -Correct Answer ✔c. a net decrease in Cash of
$460
Which of the following errors would not be revealed by the trial balance?
AIPB
AIPB Mastering Corrections of Accounting
Errors Exam Questions and Answers
Graded A+ 2025
While reviewing a trail balance, you notice the following account balances. Which
one is likely to be an error?
a. Inventory with a debit balance of $43,000
b. Discount on Bonds Payable with a debit balance of $4,000
c. Accumulated Depreciation with a debit balance of $8,000
d. Allowance for Doubtful Accounts with a credit balance of $23,000 -Correct
Answer ✔c. Accumulated Depreciation with a debit balance of $8,000
Debiting an insurance payment to Rent Expense instead of Insurance Expense is an
example of ....
a. an accrual error
b. a deferral error
c. a classification error
d. use of an incorrect accounting principle -Correct Answer ✔c. a classification
error
InCo. recorded a customer's $20,000 check as a $20,000 debit to Cash and as a
$2,000 credit to Accounts Receivable. This is an example of ....
a. an oversight
b. an incorrect account classification
AIPB
,AIPB
c. a transposition error
d. a slide error -Correct Answer ✔d. a slide error
During a bank reconciliation, a deposit recorded by the bank but not in the
company's ledger Cash account is ...
a. added to both the bank balance and the ledger Cash account balance
b. added to the ledger Cash account balance only
c. added to the bank balance only
d. subtracted from the bank balance and added to the ledger Cash account balance -
Correct Answer ✔b. added to the ledger Cash account balance only
The bank statement balance of $7,000 does not include a check outstanding of
$1,000, a deposit in transit of $275, and another company's $250 check erroneously
charged against your firm's account The reconciled bank balance is:
a.$6,375
b.$6,580
c.$6,525
d. $6,570 -Correct Answer ✔c.$6,525
Using the following information to answer questions 6-8. You are doing a bank
reconciliation for May 20X1. You have a $2,785.00 unadjusted ledger cash balance
and the following data:
Outstanding checks: No. 719, $200, No. 727 $800, No. 732, $625
AIPB
, AIPB
Deposits in transit, $1,200
Check No. 742 (for repairs) written for $505 but incorrectly recorded as $550
NSF check from a customer, $500
Bank service charge for May, $5
Balance per bank statement, $2,750
What dollar amount should be deducted from the balance per bank statement?
a. $1,425 b. $1,625 c. $505 d. $2,125 -Correct Answer ✔1625
What dollar amount should be deducted from the balance per books?
a. $460 b. $505 c. $550 d. $1,625 -Correct Answer ✔505
What adjustment will you need to make to company books?
a. a net decrease in Cash of $550
b. a net decrease in Cash of $505
c. a net decrease in Cash of $460
d. a net increase in Cash of $45 -Correct Answer ✔c. a net decrease in Cash of
$460
Which of the following errors would not be revealed by the trial balance?
AIPB
