Financial Accounting ICOM Part 01 Top 500 + MCQS Download Pdf Chapter No 15

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Chapter – 15

Rectification of Errors

Encircle the most appropriate answer from following:


1. Errors which affect one account can be

  1. Error of principle
  2. Error of Commission
  3. Error of posting
  4. Error of omission

2. If a transaction has been completely omitted from the journal it will be considered

  1. Error of commission
  2. Error of Posting
  3. Error of principle
  4. Error of omission

3 If goods purchased from Rahim Rs. 499 credited to Rehman’s account Rs. 499 this is an

  1. Error of commission
  2. Error of principle
  3. Error of omission
  4. Compensating error

4 Trade expenses of Rs. 180 posted in the ledger as Rs. 810, it will be considered as

  1. Error of principle
  2. Error of casting
  3. Error of omission
  4. Error of transposition

5.When two or more than two errors occurred on the opposite side of the account and cancelled the effect of each other are called

  1. Error of omission
  2. Error of principle
  3. Error of commission
  4. Compensating error

6. The process of totaling the data at the end of the period is called

  1. Posting
  2. Compensating
  3. Casting
  4. Recording

7. Ifa liability is recorded as income, it will be considered as

  1. Error of commission
  2. Compensating error
  3. Error of omission
  4. Error of principle

8. Errors in casting of subsidiary books are called as

  1. Error of omission
  2. Error costing
  3. Error of posting
  4. Clerical errors

9. Errors of omission affects

  1. One account
  2. Three accounts
  3. Two accounts
  4. All of above

10. Transportation cost paid for the purchase of machinery must be debited to

  1. Machinery account
  2. Purchase account
  3. Cash account
  4. Debtor account

11. Error of carry forward will affect

  1. Personal accounts
  2. Impersonal account
  3. Nominal account
  4. Real account

12. The credit purchases were wrongly recorded in sales book, the rectification of entry

  1. Increase the net profit by
  2. Decrease, the net profit by double amount
  3. Increase the net profit
  4. Decrease the net profit

13. If there is any error in bank account it will affect

  1. Trading and profit and loss account
  2. Trading account
  3. Profit and loss account
  4. Balance sheet

14. If any expense omitted to be recorded it wvill

  1. Overstate the profit
  2. Both a and b
  3. Understate the profit
  4. No effect on profit

15. If any incóme omitted to be recorded it will

  1. Overstate the profit
  2. Both a and b
  3. Understate the profit
  4. No effect on profit

16. A sale of Rs. 1000 to Farid, was credited to his account, it will affect

  1. Sales account
  2. Cash account
  3. Farid account
  4. Both a and b

17. If the error committed in the capital account, it will affect

  1. Trading and profit and loss
  2. Trading account ntaccount
  3. Balance sheet
  4. Profit and loss account

18. Wages paid for the erection of a machine debited to wages account is an example of

  1. Error of commission
  2. Error of principle
  3. Error of omission
  4. Error of costing

19. Error which affects profit and loss account relates to

  1. Nominal account
  2. Personal account
  3. Property account
  4. None of these

20. Errors, which do not effect on profit calculation, will have an effect only on

  1. Trading account
  2. Trial balance
  3. Profit and loss account
  4. Balance sheet

21. Any difference in trial balance, is transferred to

  1. Suspense account
  2. Sales account
  3. Nominal account
  4. Purchase account

22. When balance of suspense account has debit balance it will be shown in balance sheet on

  1. Liability side
  2. Credit side
  3. Asset side
  4. Capital side

23. If the balance of suspense account is credit then it will be shown in balance sheet on

  1. Capital and Liability side
  2. Assets and Liability side
  3. Asset side
  4. Capital and liability side

24. If sales return for Rs. 3000 were incorrectly included in sales book, gross profit will be

  1. Overstated by 6,000
  2. Understated by Rs. 6,000
  3. Overstated by Rs. 3,000
  4. Understated by Rs. 3,000

25. Error of principle arises when

  1. Any transaction is left wholly or partially
  2. Any transaction is affects one account
  3. Any transaction is recorded in fundamentally incorrectly manner