Error of Principles

Q.

What are the errors that do not affect trial balance?

Q.

What Are the Three Golden Rules of Accounts?

Q.

Give two examples of errors of principle.

Q.

How will you define Payments of Honorarium ?

Q.

What type of account is sales returns?

Q.

In case of Errors of Principle, there is no effect on the Trial Balance as the amounts are placed on the correct side of the Trial Balance though in wrong accounts. Is the above statement correct?

1. Yes, it is correct

2. None of the above

3. Errors of Principle effect Trial Balance

4. No, it is not correct

Q.

What are the three types of trial balances?

Q.

What is the other name for sales return?

Q.

What is another name for a purchase return?

Q.

Which document serves as the source document for entries in the sales returns book?

Q.

Failure to differentiate between capital and revenue expenditures is called _________________.

1. Errors of Omission

2. Errors of Commission

3. Errors of Principle

4. None of the above

Q.

What are the errors of trial balance?

Q.

Sale of office furniture should be credited to ___ .

1. Sales Account

2. Furniture Account

3. Cash account

4. Purchase account

Q.

Repairs of building is debited to Building A/c. This is an ___ .

1. Error of omission

2. Error of Commission

3. Error of Principle

4. None of the above

Q.

Error of Principle arises when?

1. Proper distinction is not made between Capital and Revenues

2. There is an omission of transaction

3. Wrong amounts are entered in the ledgers

4. Transaction are entered in the wrong Ledgers

Q.

Installation charges of fixed assets are considered as expenses is an error of ________________

1. Principle

2. Commission

3. Omission

4. Compensating

Q.

What type of transaction is recorded in the sales return book?

Q. Purchase of office furniture of Rs.2, 000 has been debited to office expense account. This is an error of .

1. omission
2. commission
3. principle
4. compensation

Q.

To record Rs 5000 for the lubrication of machinery equipment, the machinery account was debited in the journal entry. Is this correct?

1. Yes

2. No

3. Partially correct

4. Can not say

Q.

Which of the following is correct with regards to repair expenditure done on machinery?

1. It is debited to Machinery account

2. It is debited to Repairs account

3. It is credited to Repairs account

4. It is credited to Machinery account

Q.

Salary paid to Manager is debited to his personal account. This error is an error of ___ .

1. Omission

2. Commission

3. Principle

4. None of the above

Q.

Name one of the rules from the golden rules of accounting.

Q. When the amounts are placed on the correct side of the trial balance but in wrong accounts, then it is called errors of .

1. omission
2. commission
3. principle
4. compensation

Q.

What is a trial balance used for?

Q.

Purchase of Office furniture of Rs 2000 has been debited to Office Expense account. It is :

1. A clerical error

2. Errors of Commission

3. Error of Principle

4. Errors of Omission

Q.

Repairs to which of the following shall NOT be debited to Repairs Account?

1. Machinery

2. Building

3. None of the above

4. Asset

Q.

What Is an Example of CPM?

Q. Which of the following errors is disclosed by trial balance?

1. Non-recording of a transaction in the original books.
2. Wrong amount posted in ledger account.
3. None of the above.
4. Errors of principle.

Q. Answer in one Sentence only

Which account is debited when expenses are paid on installation of Machinery?