Rounding in financial statements

Q:  I use rounded amounts in certain financial statements (Income Statements, Statement of Cash Flow, etc.), but I do not use rounding on my Balance Sheet. Some amounts appear to be rounding incorrectly if I compare them to whole amounts on my Balance Sheet (ex. $5,430.25 rounds to $5,428). Why is this?

A:  When calculating for rounding, the system does not add whole amounts and then round the total. Each amount is rounded and then added to produce the rounded total. For example:

 
$2,252.42
$96.17
$60.17
$3.16
$558.46
$2,180.92
$19.44
$27.33
$232.18
= $5,430.25
 
If you round these amounts, you receive the following:
 
$2,252
$96
$60
$3
$558
$2181
$19
$27
$232
= $5,428
 
This will occur if, as in the example above, you are adding several amounts that do not round up, but hold cents values that add up to whole dollars.  

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