Which of the following is correct?
A) The manual ruling method can only be used to correct an error in the journal before posting.
B) The correcting entry method can only be completed in two steps.
C) The manual ruling method can be used to correct an error in the ledger after an entry has been posted.
D) All of the answers listed are correct.

Question

Quizplus · Accepted Answer

The manual ruling method involves drawing a line through the incorrect entry and writing the correct entry above it. It can be used to correct errors in the ledger even after an entry has been posted. Option A is incorrect as manual ruling can be done even after posting. Option B is incorrect as the correcting entry method can have more than two steps depending on the transaction. Option D is incorrect as option B is wrong.

Which of the Following Is Correct