Question

Unintentional omission or commission of amounts and accounts in the process of recording transactions are known as __________.

• A. misinterpretation
• B. frauds
• C. errors
• D. none of the above

Answer 1

Answer: (C)

errors

Errors are those which are happened while recording the transaction in the books of account unintentionally. As recording of transactions are done by the junior accountant, there are chances of having the errors. Errors in accounting are classified as:

1) Error of principle

2) Error of Omission

3) Error of Commission

4) Compensating error