Errors In Accounting - SS1 Accounting Past Questions and Answers - page 1
Which of the following is an error of commission in accounting?
Recording an expense as an asset
Not recording a transaction in the accounting records
Recording an incorrect amount for a transaction
Recording a transaction twice
Which of the following is an error of principle in accounting?
Not recording a transaction in the accounting records
Recording an expense as an asset
Recording an incorrect amount for a transaction
Recording a transaction twice
What is the purpose of detecting and correcting accounting errors?
To ensure accurate financial statements
To increase profits
To reduce expenses
To improve employee morale
Which of the following is an error of timing in accounting?
Recording an expense as an asset
Not recording a transaction in the accounting records
Recording an incorrect amount for a transaction
Recording a transaction in the wrong accounting period
Which type of error in accounting occurs when two or more errors cancel each other out?
Errors of reversal
Compensating errors
Errors in the original entry
Errors of omission
What is an example of an error of omission in accounting?
An example of an error of omission in accounting is not recording a transaction in the accounting records.
Why is it important to detect and correct accounting errors as soon as possible?
It is important to detect and correct accounting errors as soon as possible to ensure the accuracy of financial information and prevent potential negative consequences.