Accounting Multiple Choice Question – 22 January 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting

An error of principle arises when ……. ?

Select ONE answer:

  1. either the debit entry or the credit entry for a particular transaction is recorded in the wrong class of ledger account
  2. a transaction is not entered at all in the general (nominal) ledger double-entry accounting records
  3. 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
  4. 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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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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