Day: August 29, 2017

Accounting Multiple Choice Question – 29 August 2017

The purchase of a non-current asset was debited to the purchases account.

What is this type of accounting error called?

Select ONE answer:

  1. Commission
  2. Omission
  3. Original entry
  4. Prudence
  5. Principle

What is an accounting error?

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This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 5 – An accounting error is a non-fraudulent discrepancy in financial documentation. The term is used in financial reporting. Types of accounting errors include: Error of omission — a transaction that is not recorded; Error of commission — a transaction that is calculated incorrectly. One example of an error of commission is subtracting a figure that should have been added; Error of principle — a transaction that is not in accordance with generally accepted accounting principles ( GAAP). One example of an accounting error of principle is an expenditure that is placed in an inappropriate category.

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