Which of the following errors is an error of omission?

✅ B. Reduction in operating costs

Option A : Increase in working capacity of an asset Option B : Reduction in operating costs Option C : Replacing damaged parts of an asset Option D : Both and Correct Answer : Both and above Read more

✅ D. Debit of 600 and 200 to insurance company and Profit and Loss Account respectively and credit of 800 to Trading Account

Option A : Debit of 800 to Trading Account and credit of 600 and 200 to insurance company and Profit and Loss Account respectively Option B : Deduct the 800 from closing stock in the Trading Account Option C : Credit insurance company for 600 Option D : Debit of 600 and 200 to insurance company and Profit and Loss… Read more

✅ C. Building A/c

Option A : Salary A/c Option B : Bank A/c Option C : Building A/c Option D : Goodwill A/c Correct Answer : Building A/c Read more

✅ C. Cash book

Option A : Cash receipt journal Option B : Cash payment journal Option C : Cash book Option D : Financial statements Correct Answer : Cash book Read more

✅ A. Adjusted

Option A : Adjusted Option B : Unadjusted Option C : Understated Option D : Overstated Correct Answer : Adjusted Read more

✅ C. Cheques deposited and cleared

Option A : Errors in cash book Option B : Errors in pass book Option C : Cheques deposited and cleared Option D : Cheques issued but not presented for payment Correct Answer : Cheques deposited and cleared Read more

✅ B. All types of cash receipts and payments

Option A : Only cash sales Option B : All types of cash receipts and payments Option C : Only revenue receipts Option D : Only capital receipts Correct Answer : All types of cash receipts and payments Read more

✅ C. Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c

Option A : Debit P&L A/c and Credit Reserve for Discount on Accounts Payable A/c Option B : Debit Accounts Payable A/c and Credit P&L A/c Option C : Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c Option D : Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c Read More Details… Read more