accounting - correction of errors (that does not affect the trial balance) Flashcards
1
Q
what is the error of omission?
A
when a transaction is completely omitted from books
2
Q
what is the error of commission?
A
when the correct amount is entered, debit and credit
but wrong account of the same class (both personal accounts)
3
Q
what is the error of principle?
A
when the correct amount is entered, debit and credit
but one entries is made in an account belonging to a different class (repair to motor vehicle - motor vehicle account)
4
Q
what is the compensating error?
A
when 2 or more errors cancel each other out
overcast, casting, undercast
5
Q
what is overcast?
A
means to record a total that is more than the true total
6
Q
what is casting?
A
means totaling
7
Q
what is undercast?
A
means to record a total that is less than the true total
