Podcast
Questions and Answers
Which of the following is an example of an error of omission in accountancy?
Which of the following is an example of an error of omission in accountancy?
- Posting a transaction to the wrong account
- Recording a transaction with the wrong amount
- Failure to record a purchase of equipment (correct)
- Overstating the sales revenue
In the context of rectification of errors, what does the term 'compensating error' refer to?
In the context of rectification of errors, what does the term 'compensating error' refer to?
- An error that is corrected through compensation payments
- An error that is intentionally made to balance the accounts
- An error that cancels out the effect of another error (correct)
- An error caused by compensatory transactions
When correcting errors, which principle states that the correction should be made in the current period, regardless of when the error occurred?
When correcting errors, which principle states that the correction should be made in the current period, regardless of when the error occurred?
- Consistency principle
- Materiality principle
- Conservatism principle
- Timeliness principle (correct)
In the context of accountancy, what is the purpose of rectification of errors?
In the context of accountancy, what is the purpose of rectification of errors?
What are the common types of errors that require rectification in accountancy?
What are the common types of errors that require rectification in accountancy?
Explain the concept of 'compensating error' in the context of rectification of errors in accountancy.
Explain the concept of 'compensating error' in the context of rectification of errors in accountancy.
What is the purpose of rectification of errors in accountancy?
What is the purpose of rectification of errors in accountancy?
Explain the difference between an error of commission and an error of principle in the context of rectification of errors in accountancy.
Explain the difference between an error of commission and an error of principle in the context of rectification of errors in accountancy.
What are the steps involved in the rectification of errors in accountancy?
What are the steps involved in the rectification of errors in accountancy?
