What is a suspense account? Is it necessary that is suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?

Q: Which of the following errors will be detected by a trial balance? a. Posting a credit to Sales…

A: Posting a credit to sales instead of accounts payable may be an incorrect entry but it will have the…

Q: Prospective application of recognizing the effect of a change in an accounting estimate means A.…

A: Prospective means expected or expecting thing in the future. Financial statements are the reports of…

Q: We discussed the difference between a) tracing a sample of transactions from the source documents to…

A: Source documents refer to the original records or materials that provide evidence of a business…

Q: representation. Select one: a. Financial information without both relevance and faithful…

A: Financial information without both relevance and faithful representation is not useful

Q: Information that is reported free from error​ ________.   A. does not include estimates…

A: Accounting Error: An accounting error is described as a discrepancy which is non-fraudulent in…

Q: y available information.Accounting information is not useful unless it confirms previously available…

A: Accounting information is general purpose and should be designed to serve the information needs of…

Q: how would management know if the calculations were entered incorrectly in any kind of reporting?

A: Accounting errors are inadvertent errors in accounting entries. When an error or mistake is…

Q: What necessary steps should be taken by the bank if they classify an account as unsatisfactory?

A: Generally in the following cases bank classify particular account as unsatisfactory account: 1.When…

Q: in the field of accounting, errors can occur at various stages of the financial reporting process,…

A: Accounting errors are mistakes made in the recording, analysis, and reporting of financial…

Q: For each of the following brief scenarios, assume that you are reporting on a client’s financial…

A: Solution  Financial statements are written reports that is created by company's management to…

Q: how is the trial balance used to discover errors

A: A trial balance is an important accounting technique for ensuring the correctness of financial data…

Q: What are the risks associated with auditing accounts payable? Can you explain the process of…

A: Introduction: Accounts payable (AP) is a general ledger account that represents a company's…