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Fundamentals of financial accounting

Which of the errors will require an entry the suspense account to correct
them?

A (1), (3) and (4) only

B All

C (1) and (4) only

D (2) and (3) only

CHAPTER 9 – ACCOUNTING RECONCILIATIONS

9.1 What is the most important reason for producing a trial balance prior to
preparing the financial statements?

A It confirms the accuracy of the ledger accounts

B It provides all the figures necessary to prepare the financial statements

C It shows that the ledger accounts contain debit and credit entries of an
equal value

D It enables the accountant to calculate any adjustments required

9.2 Which of the following would NOT lead to a difference between the total of
the balances on the receivables ledger and the balance on the receivables
ledger control account?

A An error in totalling the sales day book

B An error in totalling the receipts column of the cash book

C An overstatement of an entry in a customer’s account

D An entry posted to the wrong customer’s account

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