If a Posting Error Has Occurred When Recording a Transaction

question 74

Multiple Choice

If a posting error has occurred when recording a transaction, then the out- of- balance amount will be evenly divisible by:

• A)5.
• B)2.
• C)9.
• D)11.

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Definitions:

Contract

A legally binding agreement between two or more parties defining the terms and conditions of a particular arrangement or transaction.

Journalize

The process of documenting business activities in a journal within the scope of accounting practices.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate years.

Transactions

Events that are recognized in the financial records, affecting the financial position and performance of a company.