QUESTION ONE

1. Controls are set up to minimize errors in the accounting information systems.

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2. An account that picks the summary of all transactions posted into the individual accounts in a given ledger to a one summarized account.

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3. The account that summarizes the individual customers accounts is known as

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4. The purchases ledger control account summarizes the individual suppliers' accounts/creditors accounts ------------------------------------

5. What are the types of ledgers? ---------------------------------

6. Errors are termed as not unintentional mistake which occurs at any stage of business transaction processing.

7. What are the two main types of errors?

8. Error of omission is a transaction which is not recorded in the books of the business at all.

9. Error of ----------------------------------- is where the correct amount is entered but in the wrong account.

10. Error of ---------------------------------- is where a transaction is posted to the wrong class of account, thereby breaking the accounting principle.

11. Error of ----------------------------- is said to have been committed when the figure used to pass entries into the books is different from the original correct figure.

12. ---------------------------------------- is a situation where, the correct figures are used but the entries are posted to the wrong sides of the two accounts involved.

13. --------------------------------- This form of error occurs where there is a wrong sequence of the individual characters within a number when recording.

14. --------------------------------- is account is introduced anytime the Trial Balance fails to agree and efforts to locate the error have not been fruitful.

15. ---------------------------------- is when transactions are recognized based on cash actually received and expense is recognized only when cash payment is made.

16. ---------------------------- states that revenue is recognized once goods are delivered, or services rendered to a customer and expense is incurred once benefit is derived or service is provided by another party.

17. State the full name of this relationship, Assets Liabilities = Capital -------------------

18. Which control account do you use to ascertain credit sales when it is not given but enough information is provided in the question? --------------------------------------------

19. Which control account do you use to ascertain credit purchases when it is not given but enough information is provided in the question? ----------------------------------------

20. Which statement of account do you use to ascertain accumulated fund when it is not given but enough information is provided in the question? ---------------------------------