Assume That a Company Using a Purchases Journal Made an Error

question 90

Multiple Choice

Assume that a company using a purchases journal made an error in totaling the journal's columns.The error should be discovered:

• A)When the purchases journal is posted to the general ledger.
• B)When the trial balance is prepared.
• C)When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account.
• D)When the creditors receive their payments.
• E)When the financial statements are prepared.

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often indicated by a rise in real GDP (Gross Domestic Product).

Savings Rate

The fraction of disposable income that is saved instead of spent on various goods and services.

Productivity Rate

A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in a given time period.

Savings Rate

The proportion of income that is saved rather than spent over a specific period.