When one or both aspects of a transaction are recorded in the wrong class or category of account, this is called:

Errors of Principle

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Errors of Commission

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Compensating Errors

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Errors of Omission

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Solution

The correct option is B
Errors of Commission

When one or both aspects of a transaction are recorded in the wrong class or category of account, this is called Errors of Commission.

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Similar questions

Q. When one or both aspects of a transaction are recorded in wrong class or category of account, then it is called errors of .

Q. Match List-I with List-II and select the correct answer using the codes given the lists.

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

Q. When a transaction has been omitted to be recorded in the books of account completely or partially, the mistake or error is called error 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. When transaction has been recorded in total disregard to the fundamentals of double entry system, the mistake or error is called errors of ______.

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When one or both aspects of a transaction are recorded in the wrong class or category of account, this is called:

The correct option is B Errors of Commission When one or both aspects of a transaction are recorded in the wrong class or category of account, this is called Errors of Commission.

The correct option is B
Errors of Commission

When one or both aspects of a transaction are recorded in the wrong class or category of account, this is called Errors of Commission.