S1: An error of principle occurs when a transaction is recorded in the wrong class of account. S2: An error of omission occurs when a transaction is completely omitted from the books. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: An error of principle occurs when a transaction is recorded in the wrong class of account. S2: An error of omission occurs when a transaction is completely omitted from the books. Which statement(s) is/are correct?
A. Both S1 and S2
B. S1 only
C. S2 only
D. Neither S1 nor S2
Answer: Option A
Solution (By JKSSB Mock Tests)
An error of principle violates fundamental accounting rules (e.g., treating a capital expense as revenue). An error of complete omission means the transaction is not recorded at all. Both definitions are correct.
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