Multiple choice

If an error is recorded in a journal entry,

  1. cancel the error by drawing a neat line through the error

  2. correct by writing the correct item above the canceled error

  3. do not erase the incorrect term

  4. all of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Accounting standards dictate that errors should be corrected by drawing a single line through the incorrect entry, writing the correct information above it, and never erasing or using white-out to maintain an audit trail.

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