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Flashcards in TV Errors Deck (6)
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1

What is an Error of Omission?

Transaction completely omitted. No credit or debit entry.

2

What is an Error of Principle?

When the wrong type of account is used.
E.g. An expense is recorded as an asset or a liability recorded as a sale.

3

What is an Error of commission?

When an entry is made on the wrong account.

4

What is an Error of original entry?

The wrong figure is used, so both debit and credit will show the same wrong figure.

5

What is an Error of Reversal of entries?

The wrong side of the account has been used e.g. Debit entry for sales and credit entry in the bank.

6

What is a Compensating Error?

When multiple errors have been made but, by coincidence they match and balance.