F Preparing a trial balance

Which error would NOT be revealed by a trial balance?

• 1 A one-sided entry
• 2 The credit side added up wrongly
• 3 A debit posted with a different amount from the credit
• 4 A transaction omitted completely from the records

An expense of $800 for rent is debited to the insurance account instead of the rent account. What kind of error is this?

• 1 An error of omission
• 2 An error of commission
• 3 A compensating error
• 4 An error of principle

What is the correcting journal for rent of $800 wrongly debited to insurance?

• 1 Debit suspense $800, credit insurance $800
• 2 Debit rent $800, credit insurance $800
• 3 Debit insurance $800, credit rent $800
• 4 Debit rent $800, credit bank $800

Equipment costing $5,000 is wrongly recorded as repairs expense. Ignoring depreciation, what is the effect on profit?

• 1 Profit is overstated by $5,000
• 2 Profit is understated by $10,000
• 3 Profit is understated by $5,000
• 4 Profit is unaffected

A trial balance's credit total is $450 higher than the debit total, and the error cannot be found. What is done?

• 1 A suspense account is debited with $450
• 2 A suspense account is credited with $450
• 3 The difference is ignored
• 4 Revenue is reduced by $450

Which statement is a limitation of a trial balance?

• 1 It can balance even though there are errors in the ledger
• 2 It cannot be prepared if there are errors
• 3 It proves that all transactions were recorded
• 4 It shows the profit for the year