Which of the following is an example of a clerical error?
a) Recording incorrect depreciation
b) Posting an amount to the wrong account
c) Failing to record a transaction
d) Misinterpreting accounting standards
An error that affects the trial balance agreement is known as a:
a) Compensating error
b) Error of omission
c) Error of principle
d) Error of commission
Which error occurs when an entry is completely omitted from the books?
a) Error of principle
b) Error of omission
c) Compensating error
d) Error of commission
Errors that do not affect the trial balance are called:
a) One-sided errors
b) Two-sided errors
c) Trial balance errors
d) Suspense account errors
Which of the following is an error of principle?
a) Posting an expense in the revenue account
b) Entering the wrong amount in a ledger
c) Failing to record a transaction
d) Duplicating an entry
A compensating error occurs when:
a) Two errors cancel each other out
b) An entry is recorded twice
c) A transaction is omitted
d) A wrong amount is entered
Which of the following errors will NOT affect the trial balance?
a) Posting an entry twice
b) Entering the wrong amount in both debit and credit sides
c) Entering a transaction in the wrong account
d) Failing to post a transaction
A suspense account is used to:
a) Record cash transactions
b) Record errors in trial balance
c) Record sales revenue
d) Store inventory records
What type of error occurs when a transaction is recorded in the wrong class of account?
a) Error of omission
b) Error of principle
c) Error of commission
d) Compensating error
Which of the following errors will affect the agreement of the trial balance?
a) Errors of principle
b) Errors of commission
c) Errors of omission
d) One-sided errors
How is an error of omission rectified?
a) Passing a reverse entry
b) Making an adjustment entry
c) Rewriting the journal entry
d) Omitting the transaction again
Which error occurs if the purchase of furniture is recorded in the purchases account?
a) Error of principle
b) Error of omission
c) Error of commission
d) Compensating error
If wages paid to workers are recorded as office expenses, it is an error of:
a) Principle
b) Omission
c) Commission
d) Reversal
What type of error occurs when an amount is entered in the wrong subsidiary book?
a) Error of omission
b) Error of commission
c) Error of principle
d) Compensating error
How are compensating errors detected?
a) By reviewing financial statements
b) By preparing a suspense account
c) By reviewing trial balance discrepancies
d) By matching revenues with expenses
A trial balance is useful for detecting:
a) Errors of omission
b) Errors affecting only one account
c) Two-sided errors
d) Errors of principle
Which of the following errors will cause an imbalance in the trial balance?
a) A transaction is omitted
b) A debit is posted but the corresponding credit is missing
c) An expense is recorded in the wrong account
d) A journal entry is duplicated
What is the first step in rectifying accounting errors?
a) Deleting the incorrect entry
b) Identifying the nature of the error
c) Closing the books
d) Ignoring the error
Errors detected after the final accounts are prepared are corrected by:
a) Making a journal entry in the next period
b) Changing the previous financial statements
c) Ignoring the error
d) Creating a new account
Which error affects only one account?
a) Two-sided error
b) One-sided error
c) Compensating error
d) Error of omission
An error that results in the incorrect calculation of the trial balance is known as:
a) An arithmetic error
b) An error of principle
c) An omission error
d) A clerical error
If the trial balance does not agree, the difference is posted to:
a) Cash Account
b) Suspense Account
c) Profit & Loss Account
d) Capital Account
Which of the following errors requires a journal entry for rectification?
a) Reversal error
b) Error of omission
c) Two-sided errors
d) Compensating error
A transposition error occurs when:
a) Digits are reversed in an amount
b) A transaction is omitted
c) An account is wrongly classified
d) A duplicate entry is recorded
What is the effect of a reversal error?
a) Increases expenses
b) Changes liability amounts
c) Reverses the debit and credit
d) Adjusts retained earnings
