Accounting Flashcards
1
Q
How is Margin calculated?
A
Profit/sales x 100
2
Q
How is Mark-up calculated?
A
Cost/Sales x100
3
Q
What is a transposition error?
A
Digits recorded the wrong way round.
4
Q
What is an error of emission ?
A
Transaction not recorded.
5
Q
What is an error or principle?
A
Breaking the rules of accounting.
6
Q
What is an error of commission?
A
An error made in ledger accounts?
7
Q
What is a compensation error?
A
2 errors that correct each other.
8
Q
What are the steps for correcting a suspense account error?
A
- What was the entry made?
- What entry should be made?
- What entry is required to correct it ?
