A firm's annual report contains only two pieces of information: ...

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A firm's annual report contains only two pieces of information: the financial statements and the notes to the financialstatements .
 
  Indicate whether the statement is true or false

Question 2

List and explain the two methods for correcting errors in accounting records.

[owenfalvey]

Answer to Question 1

F

Answer to Question 2

The ruling method is used to correct an error in the journal before posting or to correct an error in the ledger after posting. The error is corrected by drawing a line through the incorrect part and initialing the correction. The correcting entry method is used when incorrectly journalized amounts have been posted. There are two correcting entry methodsone-step method and two-step method.