Mention FOUR errors that the trial balance will not reveal.
The errors that the trial balance will not reveal include:
(i) Error of Omission
(ii) Error of Commission
(iii) Error of Original Entry
(iv) Error of Principle
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: 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.
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