Identifying errors

Question 1

what can be done to prevent errors

Answer 1

regularly check to see the correct values by doing a trial balance
being accurate and neat
send regular statements to customers/receive them from suppliers
uses a computerised system to reduce the chance of errors

Question 2

what is an error of commission

Answer 2

right type of account nut wrong name account

J.Adams supposed to be J.Adams LTD

Question 3

what is an error of reversal

Answer 3

debit and credit wrong way round

debit of sale and credit of cash

Question 4

what is an error omission

Answer 4

nowhere in the accounts

forgotten

Question 5

what is an error of principle

Answer 5

wrong type of account
expenses in an asset account
motor exp in motor vehicle account

Question 6

what is an error of original entry

Answer 6

read it as 45 but recorded it as 54

Question 7

What is a compensating error

Answer 7

make two errors that cancel each other out