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- 1. Multiple Choice
$200 rental payment was not recorded in the books. What is type of this error ?
Error of omission
Error of commission
Error of original entry
Compensating error
- 2. Multiple Choice
A credit purchase of goods $1200 from Calvin trading was recorded in Clara trading account. Name the error.
Error of commission
Error of omission
Error of principle
Compensating error
- 3. Multiple Choice
A cheque payment of $500 for rent was not recorded. Name the error.
Error of commission
Error of omission
Error of principle
Compensating error
- 4. Multiple Choice
Both salaries expense and commission income were overstated by $900. State the correction of error.
Dr Capital Cr salaries exp
Dr salaries expense cr commission income
Dr commission income Cr salaries expense
- 5. Multiple ChoiceWhat is the impact on profit for the year if income overstated?profit will be overstatedprofit will be understatedno effect
- 6. Multiple Choice
Cheque of $300 was issued to settle Mr Chan's account was recorded in Mr Chen's account.
Error of omission
Error of commission
Error of original entry
Compensating error
- 7. Multiple Choice
Purchase of a motor van costing $1000 was recorded in motor expenses account.
Error of omission
Error of commission
Error of original entry
Error of principle
- 8. Multiple Choice
Purchase of a motor van costing $1000 was recorded in motor expenses account.
Error of omission
Error of commission
Error of original entry
Error of principle
- 9. Multiple Choice
When there is error with credit entry not equal to credit entry,
trial balance will not agree
trial balance will agree
supense account will be appeared
there is no suspense account
- 10. Multiple Choice
A suspense account is used to rectify?
Errors affecting trial balance agreement
Errors not affecting trial balance agreement
Both types of errors
None of these
- 11. Multiple ChoiceWhich of the following is not an example of error of commissionErrors of Wrong totallingIdentification of capital expenditure as revenue expenseErrors of wrong carry forwardingNone of these
- 12. Multiple ChoiceState true or false :
If sales , purchases return, liability or income are undercasted , suspense account will be debited and related account will be credited.TrueFalse - 13. Multiple ChoiceWhich of the following statement is incorrectA trial balance is the proof of arithmetical accuracy of accountsDouble sided errors can be rectified with suspense account or without suspense accountErrors of commission may or may not affect agreement of trial balanceErrors of wrong totaling do not affect trial balance
- 14. Multiple Choice
What will be the rectifying entry if:
Goods of £5000 withdrawn by the proprietor for personal use , posted in sales account , however purchases account was correctly credited
Drawings account DR 5000
To sales a/c 5000
Suspense account Dr 5000
To drawings a/c 5000
Sales a/c dr 5000
Drawings a/c Dr 5000
To Suspense a/c 10000
None of these
- Answer choicesTagsAnswer choicesTags