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Limitations of Trial Balance
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Limitations of Trial Balance
POA > Old notes > Limitations of Trial Balance
2 cards
Cards (11)
Trial Balance
A list of all the balances in a company's
general
ledger accounts
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Limitations of the Trial Balance
Errors that may occur even when the total of the trial balance are the
same
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Types of errors in the Trial Balance
Error of
Omission
Error of
Commission
Error of
Original Entry
Error of
Principle
Compensating Error
Error of
Complete Reversal
of
Entries
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Error of
Omission
No
entry
made for a
transaction
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Error
of Commission
Wrong name recorded for a
transaction
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Error of Original Entry
Wrong amount of
money
recorded for a
transaction
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Error of
Principle
Wrong
type of account used for a
transaction
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Compensating Error
When two errors
cancel
out each other
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Error of Complete Reversal of Entries
Entries recorded on the
wrong
side of the account
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See all 11 cards
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