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:

= $5,430.25

If you round these amounts, you receive the following:

= $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.