When a company records a $20,000 check as a $20,000 debit to Cash and a $2,000 credit to Accounts Receivable, this is an example of?

The scenario describes a situation where a check intended to be recorded as a $20,000 transaction mistakenly results in a $2,000 credit instead of the full amount. This type of mistake is indicative of a slide error, which occurs when a number is recorded incorrectly, often due to misplacement of the decimal point or failing to account for all digits. In this case, while the amount itself is the same, the bookkeeping misrepresents the transaction by recording it improperly across different accounts—which leads to inaccuracies in the representation of financial records.

Understanding slide errors is crucial for maintaining accurate financial statements. They can affect the integrity of accounting data and lead to misconceptions in reporting. Recognizing this error enables businesses to rectify mistakes and improve their recording methods moving forward, ensuring that accounts are accurate and reflective of true financial positions.