COST ACCOUNTING
COST MANAGEMENT SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Query the transaction from Review Cost Accounting Distributions to see the error message.
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Review errors in the Create Accounting Execution report.
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Refer to the Accounting Event Diagnostic report.
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Refer to the Accounting Event Diagnostic log.
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Review errors in the Create Accounting Execution log.
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Detailed explanation-1: -Errors of principle are often simply accounting entries recorded in the incorrect account. The amounts are often correct, unlike an error of original entry. Oftentimes, the error of principle is a procedural error, meaning that the value recorded is correct but the entries are made in the wrong accounts.
Detailed explanation-2: -An error of original entry is when the wrong amount is posted to an account. The error posted for the wrong amount would also be reflected in any of the other accounts related to the transaction. In other words, all of the accounts involved would be in balance but for the wrong amounts.
Detailed explanation-3: -The error of principle means recording the transaction violating the accounting policies and procedures. For Example: treating the purchase of an asset as an expense, this is an error of principle.
Detailed explanation-4: -Entry Reversal Reversing accounting entries means that an entry is credited instead of being debited, or vice versa. The issue is that you can’t spot this mistake in your trial balance-it will still be in balance regardless. Example: a payment for home internet is entered as an invoice by mistake.