Day: October 4, 2017

A bookkeeper recorded a payment for vehicle repairs in the vehicles account. Which of the following correctly describes the type of error and corrections to be made?

Select ONE MOST LIKELY answer:

 

What is the definition of an accounting error of principle?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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 error of commission is a transaction that is calculated incorrectly. An error of principle is a procedural error, meaning that the value recorded was the correct value but placed incorrectly. This is an error of principle, so the value needs to be moved from vehicles to which it was originally debited (the original credit was to cash or bank) to vehicle repairs.

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