Question

If errors occur in the recording process, they___________. a. cannot be corrected until the next accounting period.B. should be corrected as adjustments at the end of the period.C. should be corrected as soon as they are discovered.D. should be corrected when preparing closing entries.

Answer 1

Answer:

C- Should be corrected as soon as they are discovered

Explanation:

If error occur in recording process they should be corrected as soon as they are discovered although the errors are usually unintentional mistakes made when recording . Small recording errors might cause major distortions in the overall figures.

Although the suspense account is the main method used to detect errors that cause discrepancies between the debit and credit balances of the trial balance in which

Adjusting entries are posted in the general ledger to correct errors detected in the trial balance.

Answer 2

Answer:

The correct answer is letter "C": should be corrected as soon as they are discovered.

Explanation:

In book-keeping a company's transactions, errors while entering operations could arise. It is suggested to correct them as soon as the mistake is found but if that is not possible the corresponding adjustment must be made. Besides, the materiality accounting principle allows surpassing the mistake in one transaction entry as long as it does not affect the results in the Financial Statements.