Day: October 11, 2025

Accounting Multiple Choice Question – 11 October 2025

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

Which ONE of the following best describes the principal difference between fraud and error?

Select ONE answer:

  1. Fraud may result in the financial statements being materially misstated
  2. Fraud is an intentional act, whereas error is unintentional
  3. A misstatement can be material whether it is caused by fraud or by error
  4. Fraud may be the result of negligence, whereas error is unintentional

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 2

  1. Not correct
  2. Correct => It is true that fraud may result in a material misstatement, but this is also true of error, so Answer 1 is incorrect. Answer 4 is incorrect, since fraud is an intentional act. Answer 2 is correct – fraud is an intentional act, but an error is not.
  3. Not correct
  4. Not correct

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