1. Errors in the books of account are classified into:
(a) Two classes
(b) Three classes
(c) Four classes
(d) Five classes
Two classes
2. Errors which are committed in the books of original entry and in the posting to ledger are measured as:
(a) Income statement errors
(b) Balance sheet errors
(c) Book-keeping errors
(d) Trial balance errors
Book-keeping errors
3. When any particular transaction has not all been entered in the book of original entry’ is called:
(a) Partial error
(b) Full error
(c) Complete error
(d) One-sided error
Complete error
4. If a transaction has been recorded in a book of original entry but has not been posted in ledger account is called:
(a) Complete error
(b) Partial error
(c) Partly error
(d) None of above
Partial error
5. If a transaction has been correctly recorded in the book of original entry but has been dispatched incorrectly in the ledger account is:
(a) Posting error
(b) Casting error
(c) Compensating error
(d) None of above
Posting error
6. Wrong distribution of capital and income items of expenses denotes:
(a) Error of casting
(b) Error of principle
(c) Compensating error
(d) Error of omission
Error of principle
7. The process of totaling the books of account at any period is called:
(a) Journalizing
(b) Totaling
(c) Posting
(d) Casting
Casting
8. The error which may happen due to short molding or excess casting in any book of original entry or in the ledge account is called:
(a) Casting error
(b) Compensating error
(c) Error of omission
(d) Error of commission Errors
Casting error
9. Which are made in the training of trial balance are called
(a) Trial balance errors
(b) Posting errors
(c) Suspense account errors
(d) None of these
Trial balance errors
10. The transaction which is misplaced from record is known as:
(a) Error of omission
(b) Error of commission
(c) Error of principle
(d) Compensating error
Error of omission
11. Error which affects income statement belong to:
(a) Real account
(b) Nominal account
(c) Personal account
(d) (b) & (c)
Nominal account
12. Incorrect application of capital and revenue payments relate to:
(a) Compensating errors
(b) Casting errors
(c) Errors of principle
(d) Errors of omission
Errors of principle
13. Wrong assessment of reduction is considered as:
(a) Error of principle
(b) Estimating error
(c) Casting error
(d) None of these
Error of principle
14. Omission of any balance from trial balance represents:
(a) Error of omission
(b) Error of commission
(c) Compensating error
(d) Trial balance error
Trial balance error
15. A ledger account used temporarily when the correct account isn’t immediately identified is called a suspense account.
(a) Suspense account
(b) Temporary account
(c) Fictitious account
(d) Error account
Suspense account
16. Rent paid Rs. 300 were posted to rent account as Rs. 80 to rectify it, rent account will be:
(a) Debited’ by Rs.380
(b) Debited by Rs.220
(c) Debited by Rs.300
(d) Debited by Rs.320
Debited by Rs.220
17. Commission received Rs.500 were posted to commission account Rs.125, to rectify it, commission account will be:
(a) Credited by Rs.625
(b) Credited by Rs.125
(c) Credited by Rs.500 (
(d) Credited by Rs.375
Credited by Rs.375
18. Good sold of Rs.50000 to Imran recorded in consumptions day book would affect:
(a) Purchases account
(b) Sales account
(c) Purchases, sales &. Imran account
(d) Purchases & sales account
Purchases, sales &. Imran account
19. The error in the totaling of sales day book is considered as:
(a) Error of casting
(b) Error of addition
(c) Error of totaling
(d) None of above
Error of casting
20. General expenses Rs.18 was posted as Rs.80, if suspense account is prepared, which account will be credited?
(a) Suspense
(b) General expenses
(c) Cash
(d) None of these
General expenses
21. Which account will be debited in the presence of insecurity account, if sales book was under cast by Rs.900?
(a) Suspense
(b) Sales
(c) Cash
(d) None of these
Suspense
22. Goods purchased from Aslam worth Rs.472 were credited to his account as Rs.742, to rectify it:
(a) Debit Aslam account by Rs. 270
(b) Debit Aslam account by Rs.742
(c) Credit Aslam account by Rs.472
(d) Debit Aslam account by Rs. 472
Debit Aslam account by Rs. 270
23. Furniture Rs.30000 was recorded in purchases day book represents:
(a) Error of principle
(b) Error of casting
(c) Error of omission
(d) None of these
Error of principle
24. Wages paid for installation of machinery debited to wages:
(a) Error of principle
(b) Error of casting
(c) Error of omission
Error of principle
25. Excess debit in stationery account of Rs.1500 cancelled by excess credit in sales account represents an error adjustment.
(a) Compensating error
(b) Error of principle
(c) Error of casting
(d) None of these
Compensating error
26. Short credit to sales account affects;
(a) Debit side of trial balance
(b) Credit side of trial balance
(c) No effect
(d) None of these
Credit side of trial balance
27. If there is any error in bank account, it will affect
(a) Trading and profit and loss account
(b) Profit and loss account
(c) Trading account
(d) Balance sheet
Balance sheet
28. If any income omitted to be recorded, it will
(a) Overstate the profit
(b) Understate the profit
(c) (a) and (b)
d) Have no effect on profit
Understate the profit
29. Error of omission affects:
(a) One account
(b) Two accounts
(c) Three accounts
(d) Four accounts
Two accounts
30. Any difference between trial balance is transferred to:
(a) Sales account
(b) Nominal account
(c) Purchases account
(d) Suspense account
Suspense account
31. An inventory error affects accounting periods.
(a) Only current
(b) Two
(c) Three
Two
32. Which of the following errors will not affect the Trial Balance?
(a) Wrong balancing of an account
(b) Writing an amount in the wrong account but on the correct side
(c) Wrong totaling of an account
(d) None of the above
Writing an amount in the wrong account but on the correct side
33. Which of the following errors is all error of omission?
(a) Sale of Rs.500 was written in the purchases journal
(b) Wages paid to Mohan have been debited to his account
(c) The total of the sales journal has not been posted to the Sales Account
(d) None of the above
The total of the sales journal has not been posted to the Sales Account
34. Purchase of office furniture for Rs.3400 has been debited to General Expenses Account. It is:
(a) An error of commission
(b) An error of omission
(c) An error of principle
(d) None of the above
An error of principle
35. Which of the following errors will affect the Trial Balance Account?
(a) Repair to buildings have been debited to buildings
(b) The total of purchases journal is Rs.1000 short
(c) Freight paid on new machinery has been debited to the Freight account
(d) None of the above
The total of purchases journal is Rs.1000 short
36. Errors of commission do not allow:
(a) Correct totaling of the Balance Sheet
(b) Correct totaling of the Trial Balance
(c) The Trial Balance to agree
(d) None of these
The Trial Balance to agree
37. The pre Plication of a Trial Balance helps in:
(a) Locating errors of complete omission
(b) Locating errors of principle
(c) Locating errors of commission
(d) None of these
Locating errors of commission
38. Which of the following errors is an error of principle?
(a) Rs.500 received from Najeeb has been debited, to his account
(b) Purchase of Rs.1000 has been entered in the sales journal
(c) Repairs to buildings have been debited to Buildings Account
(d) None of these
Repairs to buildings have been debited to Buildings Account
39. Which of the following errors is an error of principle?
(a) Rs.500 received from Rahman has been debited to his account
(b) Sales of Rs.1000 has been entered in the Purchases journal
(c) Repairs to Machinery have been debited to Machinery Account
(d) None of these
Repairs to Machinery have been debited to Machinery Account
40. Which of these errors does not affect agreement of Trial Balance?
(a) Errors of principle
(b) Complete omission in subsidiary books
(c) Compensating errors
(d) All of the above
All of the above
41. Which of these errors affect only one account?
(a) Errors of casting
(b) Errors of carry forward
(c) Errors of posting
(d) All of the above
All of the above
42. Which of these errors affect two or more accounts?
(a) Errors of complete omission
(b) Errors of principle
(c) Errors of posting to Wrong account
(d) All of the above
All of the above
43. Which of the following error is an error of principle?
(a) 5,000 received from Shan credited to Rahman A/c
(b) 5,000 incurred on installation of new plant debited to travelling expenses A/c
(c) 500 paid for wages debited to salary A/c
(d) 500 being purchase of raw material debited to purchase A/c
5,000 incurred on installation of new plant debited to travelling expenses A/c
44. Which of the following is a one sided error?
(a) 500 purchase of old equipment not recorded in the books of A/c at all
(b) 500 being expense on travelling expense credited to travelling expenses
(c) (a) & (b)
(d) None of these
500 being expense on travelling expense credited to travelling expenses
45. When one or both aspects of a transaction are recorded in the wrong class or category of account, this is called:
(a) Error of principle
(b) Error of omission
(c) Error of commission
(d) Error of original entry
Error of principle
