Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Adjusting Entries: Accrued Expenses

Financial Accounting

3. Accrual Accounting Concepts

Adjusting Entries: Accrued Expenses

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Multiple Choice

Which of the following lists the correct three steps for correcting an amount posted to an incorrect column in the accounting records?

Draw a line through the incorrect amount, write the correct amount above, and recalculate the totals.

Erase the incorrect amount, write the correct amount, and notify the supervisor.

Draw a line through the entire entry, write the correct entry on the next line, and initial the correction.

Draw a line through the incorrect amount, write the correct amount in the correct column, and recalculate the account balance.

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Verified step by step guidance

Step 1: Understand the problem by identifying the correct procedure for correcting an amount posted to an incorrect column in the accounting records. This involves ensuring accuracy and maintaining a clear audit trail.

Step 2: Recognize that the correct procedure involves drawing a line through the incorrect amount to indicate that it is no longer valid, rather than erasing it, which could compromise the integrity of the records.

Step 3: Write the correct amount above or in the correct column to ensure the correction is visible and properly documented. This step ensures clarity and transparency in the accounting records.

Step 4: Recalculate the account balance to reflect the corrected amount. This ensures that the totals are accurate and consistent with the updated information.

Step 5: Review the correction to ensure it adheres to accounting standards and practices, and verify that the updated records are accurate and complete.