Which of the following is an example of an 'Error of Commission'? MCQ with Answer and Explanation

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Which of the following is an example of an 'Error of Commission'?

A. Failing to record a transaction entirely

B. Two errors cancelling each other out

C. Recording a machinery purchase in the Purchases Account

D. Entering Rs 4,500 instead of Rs 5,400 in an account

Answer: Option D

Solution (By JKSSB Mock Tests)

An error of commission involves incorrect casting, posting, or carry-forward, such as writing the wrong numerical amount.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The term 'Virement' in budgetary control refers to:

A. Auditing the budget

B. Increasing the total budget

C. Shifting funds from one budget head to another

D. Cutting the budget

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Correct Answer: Option C

Explanation:
Virement is the process of transferring funds from one budget head to another to meet unforeseen expenses without increasing the total budget.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The primary purpose of a cash book is to:

A. Prepare the balance sheet

B. Record credit transactions

C. Calculate profit

D. Record all cash receipts and payments

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Correct Answer: Option D

Explanation:
A cash book serves as both a book of original entry and a ledger account, specifically for recording all cash receipts and payments.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

When analyzing financial statements, the 'Window Dressing' practice refers to:

A. Writing off bad debts

B. Repairing the office building

C. Manipulating accounts to show a better financial position than reality

D. Displaying financial results transparently

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Correct Answer: Option C

Explanation:
Window dressing involves accounting tricks (like delaying expense recording) to make financial statements look stronger to investors.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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