Question

Select the most appropriate alternatives from those given below and rewrite the sentence.

A transaction not recorded at all is called as an error of ________.
a) principle
b) complete omission
c) partial omission
d) duplication

Answer 1

A transaction not recorded at all is called as an error of complete omission.

Explanation:
Error of complete omission is related to those errors that are completely omitted to be recorded in the books of accounts.
Error of partial omission occurs when only one part of a transaction (debit/credit) is posted correctly, but the other part is omitted (or ignored).
Error of principle occurs when a business transaction is recorded without following the right accounting principles.