A transaction is not recorded by the accountant either wholly or partially in the books of accounts will be called as : a. Error of omission b. Error of commission c. Error of compensation d. Error of transposition
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A:
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- What is a suspense account? Is it necessary that is suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?Which of the following error will be called as an Error of Commission? a. A transaction is written partially in the books of accounts b. A transaction is written without knowing the fundamental knowledge of accounting c. A transaction is posted wrongly in the books of accounts d. A Transaction is not recorded completely in the books of accountsWhich error cannot be revealed on the preparation of the trial balance? Wrong Totalling of account Compensatory Errors Error of Commission Wrong Balancing of an account
- This kind of errors happens in the event of not knowing the accounting rules properly or not knowing the difference between the capital expenditure and revenue expenditure. a. Error of Commission b. Errors of Complete Omission c. Errors of Principle d. Errors of TranspositionThe collection of customer’s account is credited to accounts payable. What is the effect of the error in assets and liabilities of the entity? Assets - overstated; Liabilities - understated Assets - understated; Liabilities - understated Assets - overstated; Liabilities - overstated Assets - understated; Liabilities - overstatedThe collection of customer’s account is credited to accounts payable. What is the effect of the error in assets and liabilities of the entity? a.Assets - overstated; Liabilities - understated b.Assets - overstated; Liabilities - overstated c.Assets - understated; Liabilities - understated d.Assets - understated; Liabilities - overstated
- Which of the following error will be called as an Error of Principle? a. A transaction is written without knowing the fundamental knowledge of accounting b. A transaction is written partially in the books of accounts c. A transaction is posted wrongly in the books of accounts d. A Transaction is not recorded completely in the books of accountsThe payment of supplier’s account is debited to accounts receivable. What is the effect of the error in assets and liabilities of the entity? Assets - overstated; Liabilities - overstated Assets - understated; Liabilities - overstated Assets - understated; Liabilities - understated Assets - overstated; Liabilities - understatedThe payment of supplier’s account is debited to accounts receivable. What is the effect of the error in assets and liabilities of the entity? Group of answer choices a. Assets - understated; Liabilities - understated b. Assets - understated; Liabilities - overstated c. Assets - overstated; Liabilities - overstated d. Assets - overstated; Liabilities - understated
- If the accounting information is not clearly presented, which of the qualitative characteristic of the accounting information is violated?For each of the following situations, indicate whether itrepresents an accounting error and explain why it is or isnot an error. Also state whether a trial balance would indicate that an error exists for each situation.c. An expense was recorded as an assetA misstatement in the financial statements can be considered material if knowledge of themisstatement will affect a decision of A. an accountant. B. the PCAOB. C. the SEC. D. a reasonable user of the financial statements