Question

Identify the three types of tolerances in accounting.

There are 3 correct answers to this question.

1) Employee tolerance groups
2) G/L account tolerance groups
3) Customer/vendor tolerance groups
4) Special account tolerance groups

Answer 1

The three types of tolerances in accounting are Employee tolerance groups, G/L account tolerance groups, and Customer/vendor tolerance groups. The correct options are (1),(2),(3).

Step-by-step explanation:

In accounting, there are three types of tolerances:

1. Employee tolerance groups: These are used to control the allowable differences between an employee's actual pay and the pay calculated by the payroll system.
2. G/L account tolerance groups: These groups define the tolerances for general ledger (G/L) accounts, which are used to manage financial transactions within an organization.
3. Customer/vendor tolerance groups: These groups determine the tolerance limits for customers and vendors, such as the maximum outstanding balance or credit limit.

Special account tolerance groups are not one of the three types of tolerances in accounting.