Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 43

For each of the following situations, indicate whether it represents an accounting error and explain why it is or is not an error. Also state whether a trial balance would indicate that an error exists for each situation.
a. Cash received from a customer was debited to Accounts Receivable and credited to Cash.
b. Revenue was recognized when a customer purchased a gift card for future use.
c. An expense was recorded as an asset.
d. The debit side of a journal entry was recorded in the accounts, but the credit side was not.
e. A company shareholder purchased a new car, but this was not recorded by the company.