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

Question

Share Report Error

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

A. Two errors cancelling each other out

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

C. Failing to record a transaction entirely

D. Recording a machinery purchase in the Purchases Account

Answer: Option B

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

Which of the following is a feature of a joint stock company?

A. Managed by partners

B. Unlimited liability

C. No perpetual succession

D. Separate legal entity

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
A joint stock company is a separate legal entity distinct from its shareholders, with perpetual succession and limited liability.

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

Question #2

The 'Cost of Debt' is computed as:

A. EBIT / Total capital

B. Dividend / Market price

C. Interest rate * (1 - tax rate)

D. Interest rate

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Cost of debt is after tax because interest is tax deductible.

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

Question #3

An 'Adverse Opinion' is issued when:

A. There is a limitation of scope

B. Misstatements are pervasive and material, and financial statements do not present a true and fair view

C. Auditor is unable to obtain evidence

D. Financial statements are true and fair

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Adverse opinion indicates that financial statements are materially misstated.

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

Explore All Accountancy and Book Keeping MCQs