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

Commission

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Omission

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Principle

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Compensating

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Solution

The correct option is C
Principle

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

Suggest Corrections

List-I	List-II
I. Compensating errors	(a) Not recording a business transaction
II. Errors of omission	(b) Charging a Revenue item to capital
III. Errors of principle	(c) Writing a debit item on the credit side and a credit item on the debit side of equal amount
IV. Errors of commission	(d) Posting a correct amount to a wrong account