Author Question: Assume the general ledger Accounts Receivable controlling account matches the balance of the ... (Read 91 times)

lracut11 · **on:** Jul 6, 2018

Assume the general ledger Accounts Receivable controlling account matches the balance of the schedule of accounts receivable. Is it possible that errors could have occurred anyway? Explain how this could have occurred or explain why it is impossible for this to have occurred.

Question 2

A government issues 10-year bonds to finance construction of an addition to city hall. The bonds payable should be reported in the

a. General Fund.
b. Capital Projects Fund.
c. Special Revenue Fund.
d. Debt Service Fund
e. None of the above

nekcihc358 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

If the balance of the general ledger Accounts Receivable controlling account matches the balance of the schedule of accounts receivable, it only means that the two are equal. Several errors could have occurred. Amounts could have been posted to the incorrect accounts, thus causing an error in the customer account that received the incorrect charge or credit for payment and an error in the account that should have received the charge or credit for paymenttwo problems from one error. Arithmetic errors and transpositions and slides that carry through to the controlling account, as well as to the subsidiary ledger, can occur. A check or a sales invoice may simply fail to be recorded, causing an error to the customer account balance, even though everything appears to be in balance.

Answer to Question 2

E