Which of the following is not correct about Errors?
Correct answer: C. Errors of commission arise when any transaction is recorded in a fundamentally incorrect manner
- A. Errors which affect one account can be errors of posting
- B. Errors of omission arise when any transaction is left to be recorded
- C. Errors of commission arise when any transaction is recorded in a fundamentally incorrect manner
- D. Errors of carry forward from one year to another year affect both Personal and Real A/c
Explanation
An error of commission is a clerical mistake such as posting to the wrong account or entering the wrong amount; a fundamentally incorrect treatment is normally an error of principle. Thus statement d is the incorrect description.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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