An error of principle arises when ……. ?
Select ONE answer:
- either the debit entry or the credit entry for a particular transaction is recorded in the wrong class of ledger account
- a transaction is not entered at all in the general (nominal) ledger double-entry accounting records
- a correct figure is entered in the double-entry accounting records, once in the correct ledger account and once in the wrong person’s account
- two errors are made, one of which cancels out the other
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Accounting KS5 classes.
The answer is 1
2 – is an error of omission
3 – is an error of commission
4 – is a compensating error
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