Day: March 21, 2020

The journal is used to correct errors because . . .?

Select ONE answer:

1. it is faster to record the corrections in the Journal than in the ledger.
2. once entered in the Journal. there is no need to record the corrections in the ledger.
3. a narrative can be included in the Journal to explain the nature of the transaction and therefore explain the entries in the double-entry records.
4. it is easier to correct errors using the Journal than to correct them in the control accounts.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct – All corrections, just like all transactions, ultimately have to be recorded in the ledger anyway.
2. Not correct – All corrections, just like all transactions, ultimately have to be recorded in the ledger anyway.
3. Correct
4. Not correct – Errors are not corrected in control accounts.

 

 

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