Compensating Errors

Q.

Which of the following errors do not effect trial balance

1. Casting errors

2. Both A & B

3. Errors of Omission

4. Compensating errors

Q.

Compensating errors do not effect the trial balance. Is the statement correct?

1. No

2. Not sure

3. Yes

4. Partially Correct

Q.

If a sale of Rs 500 to Ram is debited as only of Rs 50 to his account, while a sale of Rs 50 to Shyam is debited as of Rs 500 to his account, then which type of error is this?

1. Errors of omission

2. Errors of Commission

3. Errors of Principle

4. Compensating Error

Q.

When an amount of Rs 327 to be written on debit side is written as Rs 237 and at the same an amount of Rs 546 is written as Rs 456 on the credit side. Will these errors be revealed by the Trial Balance?

1. Yes

2. No

3. Can not say

4. Maybe

Q.

If there is a compensating error in books, then the totals of debits & credits shall not tally in the Trial Balance. Is this Correct?

1. No

2. Yes

3. Partially Correct

4. Not sure

Q.

If the fixed assets account is incorrectly totaled and understated by 600, and the rent account is incorrectly totaled and overstated by 600, then which type of error is this:

1. Errors of omission

2. Errors of Commission

3. Compensating Errors

4. None of the above

Q. Asset appearing in the book but having no value are known as ________.

1. Wasting assets
2. Intangible assets
3. Current assets
4. Fictitious assets

Q. Which of the following errors will be revealed by the trial balance:

1. Errors of complete omission
2. Errors of Principle
3. Compensating Errors
4. Posting a correct amount to the correct account but on incorrect side

Q.

Using Model-III* discuss the series of SQL statements to produce a trial balance up to a particular date.

*Since, only Model-1 and II have been discussed in this chapter, accordingly we have attempted the question using Model-I only.

Q. Assets appearing in the books but not having any real value are known as ______________.

1. Intangible assets
2. Fictitious assets
3. All of these
4. Wasting assets

Q. Find out the error in the following sentence, if any. If there is no error, your answer is 'E'.
When he lent me (A) some books, he asked (B) me to return then back (C) by the end of the month (D) No Error (E).

1. A
2. E
3. B
4. D
5. C