Assume That a Company Using a Purchases Journal Made an Error

question 53

Multiple Choice

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

• A) When the purchases journal is posted to the general ledger.
• B) When the sum of the vendor accounts does not equal the balance in the Purchases journal.
• 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:

Stable Rules

Regulations or principles that remain constant and unchanged over time.

Environmental Context

The set of physical, social, and economic conditions surrounding and affecting the existence or development of an entity or subject.

Political Pluralism

The acknowledgment and acceptance of diversity in political beliefs and ideologies within a society.

International Economic Factors

Encompass global influences that impact the economic conditions of countries, such as trade policies, exchange rates, and international investment flows.