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 and R is the correct explanation of A
C.Both A and R are true but R is NOT the correct explanation of A
Explanation:
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.
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