A: Errors of principle do not affect the Trial Balance. R: Errors of principle involve recording a transaction in the wrong class of account. Choose the correct option. MCQ with Answer and Explanation
A: Errors of principle do not affect the Trial Balance. R: Errors of principle involve recording a transaction in the wrong class of account. Choose the correct option.
A. A is false but R is true
B. Both A and R are true but R is NOT the correct explanation of A
C. Both A and R are true and R is the correct explanation of A
D. A is true but R is false
Answer: Option C
Solution (By JKSSB Mock Tests)
An error of principle (e.g., treating a capital expense as revenue) violates accounting rules but keeps the debit and credit amounts equal. Therefore, the Trial Balance still agrees. R correctly explains the nature of the error.
Explanation:
CBS integration with PFMS ensures that once a payment instruction is processed, the funds are credited directly to the beneficiary's bank account in real-time, eliminating manual handling and delays.
Explanation:
Under Fair Value, items are reported based on current market valuations, replacing the traditional historical cost concept for many financial instruments.
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