- 1 Marks
Question
Olojuede limited failed to record N120,000 wages. The error committed is that of
A. Omission
B. Commission
C. Principle
D. Compensation
E. Original entry
Answer
Answer: A. Omission
Explanation:
The answer is A because the error committed in failing to record an item entirely is referred to as an error of omission. This type of error happens when a transaction is completely left out from the accounting records, meaning that neither the debit nor the credit entry was made for it.
Run down:
The selected answer is A because an omission error means no part of the transaction was entered into the accounting records, which matches the situation where the wages were not recorded at all.
- Tags: Errors, Financial Transactions, Omission
- Level: Level 1
- Topic: Correction of errors
- Series: MAY 2016
- Uploader: Joseph