Question # 1

If any income omitted to be recorded it will

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Overstate the profit

Understate the profit

Both a & b

having no effect on profit

If a liability is recorded as income, it will be considered as

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Error of commission

Error of omission

Error of Principle

None of these

Transportation cost paid for the purchases of Machinery must be debited to

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Transportation cost account

Purchases account

Machinery account

Cash account

Errors of affect one account can be

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Errors of principle

Errors of posting

Errors of omission

None of these

Error of carry forward will affect

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Personal accounts

Nominal accounts

Impersonal accounts

None of these

Error of principle arises when

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Any transaction is incorrectly recorded, either wholly or partially

Any transaction is left wholly or partially

Any transaction is affects one account

Any transaction is recorded in fundamentally incorrect manner

If amount for Rs. 554 recovered from Ali, previously written off as bad debts we should

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Debited to bad debts recovered account

Credited to Ali account

Debited to bad debts account

Credited to bad debts recovered account

Error which affects profit and loss account relates to

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Nominal account

Property account

Personal account

None of these

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

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Error of principle

Error of omission

Error of casting

Error of transposition

When two or more than two error occurred on the opposite side of the account and cancelled the affect of each are called

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Errors of omission

Compensating errors

Errors of commission

Errors of principle

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

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Sales account

Farid account

Cash account

Both a & b

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

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Posting

Casting

Compensating

Recording

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

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Increase the net profit by double amount

Decrease the net profit by double amount

Decrease the net profit

Increase the net profit

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

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Error of omission

Error of commission

Error of principle

None of these

Any difference in trail balance, is transferred to

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Sales account

Nominal account

Purchases account

Suspense account

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Principles of accounting Icom Part 1 English Medium Chapter 14 Online Test MCQs With Answers

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