Different Types of Errors Flashcards
1
Q
Error of Omission
A
Not adding the transaction
2
Q
Error Of Commission
A
Recording a debit or credit to the correct account but to the wrong subsidiary account or ledger.
3
Q
Error of Principle
A
Accounting entries recorded with the correct amount but in the incorrect account.
4
Q
Error of Original Entry
A
The wrong amount is posted to an account.
5
Q
Compensating Error
A
Two errors cancel each other out.
6
Q
Reversal of Entries
A
Debit and Credit entries are made in the account but on the wrong side.
