Compensating errors do not affect the agreement of __________.

trial balance

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cash flow statement

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fund flow statement

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none of the above

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Solution

The correct option is D trial balance
When an error is compensated by another error by nullify the amount of difference, it is said to be a compensating error. Due to these error, there will no affect on trial balance.

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Similar questions

Q. Compensating errors do not affect the agreement of -

State whether the following statements are True or False-

1) A trial balance can agree in spite of certain errors.
2) Errors committed due to lack of accounting knowledge are errors of omission.
3) Trial balance is prepared from the balance of ledger accounts.
4) Rectification entries are passed in cash book.
5) Single sided errors affect only one account.
6) Suspense account is automatically closed after rectification of all errors.
7) Errors affecting the agreement of trial balance are called on side errors.
8) There is no need to open a suspense account if the trial balance agrees.
9) All the errors can be rectified only through suspense account.
10) Compensating errors affect the agreement of trial balance.

Q. Which of the following types of errors do not affect the agreement of trial balance?

Q. Which of the following statement are false?
a. Old furniture written off doesn't affect cash flow.
b. Cash flow statement is a substitute for cash account.
c. Appropriation of retained earnings is not shown in cash flow statement.
d. Net cash flow during a period can never be negative.

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

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Compensating errors do not affect the agreement of __________.

The correct option is D trial balanceWhen an error is compensated by another error by nullify the amount of difference, it is said to be a compensating error. Due to these error, there will no affect on trial balance.

The correct option is D trial balance
When an error is compensated by another error by nullify the amount of difference, it is said to be a compensating error. Due to these error, there will no affect on trial balance.