Question 35
Correction of Errors and Suspense AccountWhich of the following will not affect the agreement of the Trial Balance? I. Compensating error II. Debiting an item instead of crediting it III. Making only a single entry
- A.I only
- B.II only
- C.III only
- D.II and III only
- E.I, II and III.
Show the answer and explanation
Answer: A (I only)
Explanation
Compensating errors cancel out; posting to the wrong side or making one entry leaves the totals unequal.