Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:
A) When the creditors receive their payments.
B) When the sum of the vendor accounts does not equal the balance in the Purchases journal.
C) When the purchases journal is posted to the general ledger.
D) When the financial statements are prepared.
E) When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account.

Question

Quizplus · Accepted Answer

The error in totaling the accounts payable column in the purchases journal would be discovered when the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account, as this comparison would reveal discrepancies.

Assume That a Company Using a Purchases Journal Made an Error