If a Journal Entry That Contains an Error Has Already

question 42

Multiple Choice

If a journal entry that contains an error has already been posted,

• A)the journal need not be corrected but the posting to the ledger should be corrected by crossing out the incorrect data and writing the correct data above it.
• B)the incorrect items should be corrected by crossing out the incorrect data and writing the correct data above it in both the journal and the ledger.
• C)the incorrect items should be erased and replaced with the correct data.
• D)a correcting entry should be journalized and posted.

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Definitions:

Illegal

Actions or activities that are forbidden by law, which can lead to penalties or punishment if one is caught and convicted.

Legal But Unethical

Actions or practices that may not violate laws but are considered wrong or inappropriate according to ethical standards.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts. The process begins with a petition filed by the debtor or on behalf of creditors.

Top Management

The highest level of managers and executives in an organization who are responsible for making overarching decisions and establishing policies.