Spot the Lie: Errors (ACCA FA)

Exercise and reference answers

Questions

1. False statement

   A trial balance that balances proves there are no errors.

   Statements

   1. An error of omission leaves a transaction out entirely.
   2. A compensating error means two errors cancel out.
   3. A trial balance that balances proves there are no errors.

2. False statement

   Reversal of entries is corrected by a suspense account only.

   Statements

   1. Reversal of entries is corrected by a suspense account only.
   2. A suspense account holds an unexplained difference.
   3. An error of principle uses the wrong type of account.

3. False statement

   Single-entry errors never affect the trial balance.

   Statements

   1. A transposition error swaps digits in a figure.
   2. Single-entry errors never affect the trial balance.
   3. An error of commission posts to the wrong personal account.

Instructions

Tap the false statement about errors.