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Chapter – 15
Rectification of Errors
Encircle the most appropriate answer from following:
1. Errors which affect one account can be
- Error of principle
- Error of Commission
- Error of posting
- Error of omission
2. If a transaction has been completely omitted from the journal it will be considered
- Error of commission
- Error of Posting
- Error of principle
- Error of omission
3 If goods purchased from Rahim Rs. 499 credited to Rehman’s account Rs. 499 this is an
- Error of commission
- Error of principle
- Error of omission
- Compensating error
4 Trade expenses of Rs. 180 posted in the ledger as Rs. 810, it will be considered as
- Error of principle
- Error of casting
- Error of omission
- 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
- Error of omission
- Error of principle
- Error of commission
- Compensating error
6. The process of totaling the data at the end of the period is called
- Posting
- Compensating
- Casting
- Recording
7. Ifa liability is recorded as income, it will be considered as
- Error of commission
- Compensating error
- Error of omission
- Error of principle
8. Errors in casting of subsidiary books are called as
- Error of omission
- Error costing
- Error of posting
- Clerical errors
9. Errors of omission affects
- One account
- Three accounts
- Two accounts
- All of above
10. Transportation cost paid for the purchase of machinery must be debited to
- Machinery account
- Purchase account
- Cash account
- Debtor account
11. Error of carry forward will affect
- Personal accounts
- Impersonal account
- Nominal account
- Real account
12. The credit purchases were wrongly recorded in sales book, the rectification of entry
- Increase the net profit by
- Decrease, the net profit by double amount
- Increase the net profit
- Decrease the net profit
13. If there is any error in bank account it will affect
- Trading and profit and loss account
- Trading account
- Profit and loss account
- Balance sheet
14. If any expense omitted to be recorded it wvill
- Overstate the profit
- Both a and b
- Understate the profit
- No effect on profit
15. If any incóme omitted to be recorded it will
- Overstate the profit
- Both a and b
- Understate the profit
- No effect on profit
16. A sale of Rs. 1000 to Farid, was credited to his account, it will affect
- Sales account
- Cash account
- Farid account
- Both a and b
17. If the error committed in the capital account, it will affect
- Trading and profit and loss
- Trading account ntaccount
- Balance sheet
- Profit and loss account
18. Wages paid for the erection of a machine debited to wages account is an example of
- Error of commission
- Error of principle
- Error of omission
- Error of costing
19. Error which affects profit and loss account relates to
- Nominal account
- Personal account
- Property account
- None of these
20. Errors, which do not effect on profit calculation, will have an effect only on
- Trading account
- Trial balance
- Profit and loss account
- Balance sheet
21. Any difference in trial balance, is transferred to
- Suspense account
- Sales account
- Nominal account
- Purchase account
22. When balance of suspense account has debit balance it will be shown in balance sheet on
- Liability side
- Credit side
- Asset side
- Capital side
23. If the balance of suspense account is credit then it will be shown in balance sheet on
- Capital and Liability side
- Assets and Liability side
- Asset side
- Capital and liability side
24. If sales return for Rs. 3000 were incorrectly included in sales book, gross profit will be
- Overstated by 6,000
- Understated by Rs. 6,000
- Overstated by Rs. 3,000
- Understated by Rs. 3,000
25. Error of principle arises when
- Any transaction is left wholly or partially
- Any transaction is affects one account
- Any transaction is recorded in fundamentally incorrectly manner