This quiz works best with JavaScript enabled. Home > English Grammar > Grammar > Editing And Proofreading > Correction Of Errors – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Correction Of Errors Quiz 3 (51 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Furniture of Rs8000 was purchased from Rahul on credit. Rahul's account was correctly credited but furniture account was debited with Rs80, 000. What will be the rectifying entry? A) Suspense a/c dr 8000To Furniture a/c. B) Furniture a/c Dr 72000To Rahul 72000. C) Rahul dr 72000To suspense a/c 72000. D) None of these. Show Answer Correct Answer: D) None of these. 2. Which of the following errors will NOT affect the agreement of a trial balance? A) A-Error in computation of balances. B) B-Transposition of figures. C) C-Errors of wrong posting in the debit and credit columns. D) D-Errors of principle. Show Answer Correct Answer: D) D-Errors of principle. 3. In which of the following circumstances will the preparation of a Trial Balanceassist in disclosing an error? A) A-Failure to post an entry journal. B) B-Posting rent expenses to motor running account. C) C-Failure to post part of a journal entry. D) D-Posting the debit of a journal entry as a credit and vice versa. Show Answer Correct Answer: C) C-Failure to post part of a journal entry. 4. A suspense account is used to rectify? A) Errors affecting trial balance agreement. B) Errors not affecting trial balance agreement. C) Both types of errors. D) None of these. Show Answer Correct Answer: A) Errors affecting trial balance agreement. 5. State the effect on Profit for the Year:Cash payment for Furniture and Fittings had been entered into the bank account in error A) Increase. B) Decrease. C) No Effect. D) None of the above. Show Answer Correct Answer: C) No Effect. 6. State the effect on Profit for the Year:Sales over added by £150 A) Increase. B) Decrease. C) No Effect. D) None of the above. Show Answer Correct Answer: B) Decrease. 7. Sales of 1, 500 posted correctly but omitted from trial balance: A) Compensating error. B) Error of omission. C) Error of commission. D) Error of principle. Show Answer Correct Answer: B) Error of omission. 8. BOTH SALES AND WAGES WERE OVERCAST BY $ 100. THE CORRECT JOURNAL ENTRY WAS ..... A) DEBIT SALES $ 100 AND CREDIT WAGES $ 100. B) DEBIT SALES $ 100 AND CREDIT SUSPENSE $ 100. C) DEBIT WAGES $ 100 AND CREDIT SALES $ 100. D) DEBIT WAGES $ 100 AND CREDIT SUSPENSE $ 100. Show Answer Correct Answer: A) DEBIT SALES $ 100 AND CREDIT WAGES $ 100. 9. What type of error has occurred when credit sales of $ 120 to Yan were debited to the account of Leo? A) Principle. B) Compensating. C) Commission. D) Omission. Show Answer Correct Answer: C) Commission. 10. Cost of repairs to the ceiling, $ 5, 400, has been posted to the premises account.State the effect of error on profit for the period, assets, liabilities and equity. A) Profit for the period, Assets and Equity-overstated. B) Profit for the period, Assets and Equity-overstated by $ 5, 400. C) Profit for the period, Assets, Liabilities and Equity-overstated by $ 5, 400. D) Profit for the period, Assets, Liabilities and Equity-no effect. Show Answer Correct Answer: B) Profit for the period, Assets and Equity-overstated by $ 5, 400. 11. Payment of $ 1200 for utilities by cheque has been omitted from the books. The correcting journal entry would be: A) DR Utilities expense payable 1200 CR Utilities expense 1200. B) DR Cash at bank 1200 CR Utilities expense 1200. C) DR Utilities expense 1200 CR Utilities expense payable 1200. D) DR Utilities expense 1200 CR Cash at bank 1200. Show Answer Correct Answer: D) DR Utilities expense 1200 CR Cash at bank 1200. 12. Repairs recorded as equipment: A) Error of omission. B) Error of principle. C) Compensating error. D) Error of commission. Show Answer Correct Answer: B) Error of principle. 13. A cheque payment of $ 500 for rent was not recorded. Name the error. A) Compensating error. B) Error of commission. C) Error of omission. D) Error of principle. Show Answer Correct Answer: C) Error of omission. 14. Purchase of stationary for $ 76 from papers manufacturers ltd was posted as $ 67. what is the rectification entry? A) Dr:Papers manufacturers ltd $ 76Cr:Purchases $ 76. B) Dr:Purchases $ 76Cr:Papers manufacturers ltd $ 76. C) Dr:Stationary $ 9Cr:Papers manufacturers ltd $ 9. D) Dr:Papers manufacturers ltd $ 9Cr:Purchases $ 9. Show Answer Correct Answer: C) Dr:Stationary $ 9Cr:Papers manufacturers ltd $ 9. 15. Drawing's account had been over casted by $ 250 and rent received account also over casted by $ 250. what type of error is this? A) Compensating Error. B) Complete Reversal Entry. C) Original Entry. D) Error of Commission. Show Answer Correct Answer: A) Compensating Error. 16. Purchase of office equipment worth $ 400 by cheque has been recorded as repairs of equipment. The correcting journal entry would be: A) DR Repairs expense 400 CR Cash at bank 400. B) DR Repairs expense 400CR Repairs expense payable 400. C) DR Repairs expense 400CR Office equipment 400. D) DR Office equipment 400CR Repairs expense 400. Show Answer Correct Answer: D) DR Office equipment 400CR Repairs expense 400. 17. If the trial balance totals are unequal, this indicates: A) All accounts are correct. B) Errors in ledger postings or balancing. C) Profit has been earned. D) Cash has been overstated. Show Answer Correct Answer: B) Errors in ledger postings or balancing. 18. A further sale of goods to Shakib of £1750 had not been recorded in the books of The Coach. A) Error of principle. B) Error of commission. C) Error of omission. D) Error of original entry. Show Answer Correct Answer: C) Error of omission. 19. Ledger balances:Cash 3, 000 (Dr), Bank 7, 000 (Dr), Capital 8, 000 (Cr), Sales 2, 000 (Cr). A) Debit 10, 000; Credit 12, 000. B) Debit 12, 000; Credit 10, 000. C) Debit 10, 000; Credit 10, 000. D) Debit 10, 000; Credit 8, 000. Show Answer Correct Answer: C) Debit 10, 000; Credit 10, 000. 20. A sale of 2, 000 is recorded as 200 in the sales book. This is: A) Error of omission. B) Error of commission. C) Compensating error. D) Error of principle. Show Answer Correct Answer: B) Error of commission. 21. Cheque of $ 550 received from Betty has been debited to Betty's account and credited to cash at bank account. The correcting journal entry would be: A) DR Trade receivables-Betty 550CR Cash at bank 550. B) DR Cash at bank 1100CR Trade receivables-Betty 1100. C) DR Trade payable-Betty 550CR Cash at bank 550. D) DR Cash at bank 1100CR Trade payable-Betty 1100. Show Answer Correct Answer: B) DR Cash at bank 1100CR Trade receivables-Betty 1100. 22. The entries made for the payment of a credit supplier, L Mohammed, by cheque $ 320 were:Dr Bank $ 320, Cr L Mohammed $ 320 A) Errors of complete reversal. B) Errors of principle. C) Errors of original entry. D) Errors of commission. E) Errors of omission. Show Answer Correct Answer: A) Errors of complete reversal. 23. Transaction entered in correct account but with incorrect figure A) Error of commission. B) Error of omission. C) Error of original entry. D) Error of principle. Show Answer Correct Answer: C) Error of original entry. 24. Sales of credit for $ 44 to Noor was debited to the account of Yarin A) Principle. B) Commission. C) Reversal. D) Omission. Show Answer Correct Answer: B) Commission. 25. A cheque counterfoil for rent $ 680 was entirely overlooked A) Errors of omission. B) Compensating errors. C) Errors of original entry. D) Errors of commission. E) Errors of principle. Show Answer Correct Answer: A) Errors of omission. 26. All nominal accounts were closed and income statement was prepared. Sales invoice of $ 3000 were omitted. Correcting journal entries should be: A) Dr. Trade receivables $ 3000 Cr. Sales $ 3000. B) Dr. Trade receivables $ 3000 Cr. Profit and loss $ 3000. C) All the above. D) None of the above. Show Answer Correct Answer: B) Dr. Trade receivables $ 3000 Cr. Profit and loss $ 3000. 27. A receipt showed that cash sales had totalled $ 2320. The entries in the accounts were Dr Cash $ 2230 and Cr Sales $ 2230 A) Errors of principle. B) Errors of commission. C) Errors of complete reversal. D) Errors of omission. E) Errors of original entry. Show Answer Correct Answer: E) Errors of original entry. 28. 05) The total of the debit column of a trial balance was more than the total of the credit column. One account balance had been entered in the wrong column. Which one was it?A cash B discount received C drawings D irrecoverable debts A) A. B) D. C) B. D) C. Show Answer Correct Answer: C) B. 29. A cheque of RM 2, 500 received for commission income was debited to the commission income and credited to cash at bank account. A) Reversal Error. B) Compensating Error. C) All the above. D) None of the above. Show Answer Correct Answer: A) Reversal Error. 30. Discounts allowed of $ 28 were debited to the credit customer's account and credited to the discounts allowed account A) Errors of omission. B) Errors of commission. C) Errors of principle. D) Errors of original entry. E) Errors of complete reversal. Show Answer Correct Answer: E) Errors of complete reversal. 31. A compensating error is: A) When a transaction is omitted. B) When two separate errors cancel each other out. C) When a transaction is entered in the wrong account. D) When a ledger is balanced incorrectly. Show Answer Correct Answer: B) When two separate errors cancel each other out. 32. 08 ) A trader calculated her profit for the year at $ 14 800. The following errors were then discovered. No entry had been made for $ 200 wages accrued. The insurance expense included a prepayment of $ 90. What is the correct profit for the year?A $ 14 510B $ 14 690C $ 14 910D $ 15 090 A) C. B) B. C) A. D) D. Show Answer Correct Answer: B) B. 33. Purchase of inventory for $ 450 was treated as the purchase of non-current assets A) Compensating. B) Reversal. C) Principle. D) Omission. Show Answer Correct Answer: C) Principle. 34. Cash sales of $ 820 were recorded in the accounts as Dr Cash $ 820 Cr Sales $ 800. The total of the travel expenses in the petty cash book was mistotalled at $ 30 rather than the correct figure of $ 50 A) Compensating errors. B) Errors of original entry. C) Errors of commission. D) Errors of principle. E) Errors of omission. Show Answer Correct Answer: A) Compensating errors. 35. Sales returns and discounts received were both overstated by RM 250. A) Reversal Error. B) Compensating Error. C) All the above. D) None of the above. Show Answer Correct Answer: B) Compensating Error. 36. Trial balance totals differ by 200: A) Ignore it. B) Post more transactions. C) Close ledger. D) Prepare suspense account. Show Answer Correct Answer: D) Prepare suspense account. 37. The closing inventories of a firm were overvalued by 3 million KHR due to overcasterror in one of the inventory valuation sheets. How would the correction ofthis affect the reported profit? A) A-Increase reported profit by 3 million KHR. B) C-No effect on the reported profit. C) B-Reduce reported profit by 3 million KHR. D) D-Increase reported profit by 6 million KHR. Show Answer Correct Answer: C) B-Reduce reported profit by 3 million KHR. 38. State the effect on Profit for the Year:Discount Allowed of £25 had been omitted from the Ledger Accounts A) Increase. B) Decrease. C) No Effect. D) None of the above. Show Answer Correct Answer: B) Decrease. 39. The purchase of a computer for office use was debited to purchases account.This is an error of A) B-omission. B) C-original entry. C) A-commission. D) D-principle. Show Answer Correct Answer: D) D-principle. 40. Repairs to motor car $ 200 debited to motor car account. what is the rectification entry? A) Dr:Motor car $ 00Cr:Cash $ 200. B) Dr:Motor car $ 200Cr:Repairs $ 200. C) Dr:Repairs $ 200Cr:Cash $ 200. D) Dr:Repairs $ 200Cr:Motor car $ 200. Show Answer Correct Answer: D) Dr:Repairs $ 200Cr:Motor car $ 200. 41. Which of the following items appear on the same side of the trial balance? A) A-Drawings and accruals. B) B-Carriage outwards and prepayments. C) C-Carriage inwards and rental income. D) D-Opening inventory and purchase returns. Show Answer Correct Answer: B) B-Carriage outwards and prepayments. 42. An error of omission occurs when: A) A transaction is entered on the wrong side. B) A debit is posted as a credit. C) A transaction is recorded in the wrong account. D) A transaction is completely not recorded. Show Answer Correct Answer: D) A transaction is completely not recorded. 43. Purchase of 2, 000 posted to sales account: A) Error of omission. B) Error of commission. C) Compensating error. D) Error of principle. Show Answer Correct Answer: B) Error of commission. 44. 09) A sales invoice for $ 800 was incorrectly recorded in the sales journal as $ 1800. How did this error affect the trial balance?A The trial balance balanced but both totals were overstated by $ 1000.B The trial balance balanced but both totals were understated by $ 1000.C The trial balance did not balance because the credits were overstated by $ 1000.D The trial balance did not balance because the debits were understated by $ 1000. A) B. B) C. C) D. D) A. Show Answer Correct Answer: D) A. 45. Which of the following errors would affect a trial balance? A) D-Error of omission. B) A-Error of commission. C) B-Error of original entry. D) C-Casting error. Show Answer Correct Answer: D) C-Casting error. 46. Goods worth $ 300 withdrawn by the owner during the year for personal use have been debited to the cost of sales account and credited to the inventory account.State the effect of error on profit for the period, assets, liabilities and equity. A) Profit for the period-understated by $ 300. B) Profit for the period-understated by $ 600. C) Profit for the period-overstated by $ 300. D) Profit for the period-overstated by $ 600. Show Answer Correct Answer: A) Profit for the period-understated by $ 300. 47. WHICH OF THE FOLLOWING ERROR IS AN ERROR OF ORIGINAL ENTRY? A) SALES JOURNAL TOTAL $ 453 WAS TRANSFERRED AS $ 345. B) PURCHASES $ 440 FROM FAHAD ENTERED IN THE BOOKS AS $ 404. C) SALARIES $ 450 WERE DEBITED TO RENT A/C. D) SALES TO A.ROBERT ENTERED IN J.ROBERT A/C. Show Answer Correct Answer: B) PURCHASES $ 440 FROM FAHAD ENTERED IN THE BOOKS AS $ 404. 48. Both salaries expense and commission income were overstated by $ 900. State the correction of error. A) Dr Capital Cr salaries exp. B) Dr salaries expense cr commission income. C) Dr commission income Cr salaries expense. D) None of the above. Show Answer Correct Answer: C) Dr commission income Cr salaries expense. 49. THE PURPOSE OF TRIAL BALANCE IS TO ..... A) CLOSE THE ACCOUNTS IN THE BOOKS. B) CHECK THE ARITHMETICAL ACCURACY OF THE ENTRIES. C) CORRECT THE ERRORS IN THE BOOKS. D) DETERMINE THE GROSS AND NET PROFIT OF THE BUSINESS. Show Answer Correct Answer: B) CHECK THE ARITHMETICAL ACCURACY OF THE ENTRIES. 50. Sale of $ 48 cash were debited to sales and credited to cash A) Omission. B) Principle. C) Reversal. D) Commission. Show Answer Correct Answer: C) Reversal. 51. Goods RM 50 taken by owner for his personal use was recorded as RM 500 in the books.Correct the above error. A) Dr Drawings RM 50Cr Suspense RM 50. B) Dr Suspense RM 50Cr Drawings RM 50. C) Dr Suspense RM 450Cr Drawingss RM 450. D) Dr Drawings RM 450Cr Suspense RM 450. Show Answer Correct Answer: C) Dr Suspense RM 450Cr Drawingss RM 450. ← PreviousRelated QuizzesGrammar QuizzesEnglish Grammar QuizzesCorrection Of Errors Quiz 1Correction Of Errors Quiz 2Accept Vs. Except QuizAffect Vs Effect QuizCommon Mistakes QuizCommon Modifier Errors QuizCommon Usage Errors QuizCommon Word Errors Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books