This quiz works best with JavaScript enabled. Home > Grammar > Editing And Proofreading > Correction Of Errors – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Correction Of Errors Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the accounting error which occurs as a result of a mistake made inidentifying a customer's account? A) A-Error of principle. B) B-Error of commission. C) C-Error of identity. D) D-Error of original entry. Show Answer Correct Answer: B) B-Error of commission. 2. State the effect on Profit for the Year:Sales £700 had been entered into the Purchases Account in error A) Increase. B) Decrease. C) No Effect. D) None of the above. Show Answer Correct Answer: A) Increase. 3. The payment of interest $ 110 was debited to the insurance account. A) Errors of omission. B) Errors of commission. C) Errors of principle. D) Errors of complete reversal. E) Errors of original entry. Show Answer Correct Answer: B) Errors of commission. 4. If a purchase of 1, 000 is entered in sales account: A) Error of omission. B) Error of commission. C) Error of principle. D) Compensating error. Show Answer Correct Answer: B) Error of commission. 5. Cheque of $ 300 was issued to settle Mr Chan's account was recorded in Mr Chen's account. A) Error of omission. B) Error of commission. C) Error of original entry. D) Error of principle. E) Compensating error. Show Answer Correct Answer: B) Error of commission. 6. What is the main purpose of a trial balance? A) To calculate net profit. B) To check the arithmetical accuracy of ledger accounts. C) To prepare financial statements. D) To record transactions. Show Answer Correct Answer: B) To check the arithmetical accuracy of ledger accounts. 7. Salaries account and Sales account are both overcast by RM 500. Does this error need Suspense account to make correction? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 8. State the effect on Profit for the Year:Discount Received of £90 had been omitted from the Ledger Accounts A) Increase. B) Decrease. C) No Effect. D) None of the above. Show Answer Correct Answer: A) Increase. 9. Sales of goods on credit to John $ 400 had been debited to J. Jeans account. what type of error is this? A) Error of Commission. B) Reversal Entry. C) Error of Omission. D) Error of Principle. Show Answer Correct Answer: A) Error of Commission. 10. What type of error has occurred when office expenses of $ 40 was actually a payment made for the owner's private expenses? A) Principle. B) Commission. C) Omission. D) Compensating. Show Answer Correct Answer: A) Principle. 11. An error of commission occurs when: A) A transaction is entered in the wrong account but correct side. B) A transaction is omitted entirely. C) Correct amount posted on the wrong side. D) Two errors cancel each other out. Show Answer Correct Answer: A) A transaction is entered in the wrong account but correct side. 12. A Cheque received from Mathew $ 500 had been entered in the books as $ 400. what is the rectification entry? A) Dr:Mathew $ 100Cr:Bank $ 100. B) Dr:Bank $ 100Cr:Mathew $ 100. C) Dr:Mathew $ 500Cr:Bank $ 500. D) Dr:Bank $ 500Cr:Mathew $ 500. Show Answer Correct Answer: B) Dr:Bank $ 100Cr:Mathew $ 100. 13. AN ENTRY OF A TRANSACTION HAS BEEN REVERSED. IDENTIFY THE ERROR. A) ERROR OF COMMISSION. B) ERROR OF COMPENSATING. C) ERROR OF ORIGINAL ENTRY. D) ERROR OF REVERSAL ENTRIES. Show Answer Correct Answer: D) ERROR OF REVERSAL ENTRIES. 14. Give me a piece of blotting paper A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 15. Ledger balances:Cash 5, 000 (Dr), Capital 10, 000 (Cr), Purchases 6, 000 (Dr), Sales 8, 000 (Cr). What is the trial balance total? A) Debit 11, 000; Credit 18, 000. B) Debit 11, 000; Credit 11, 000. C) Debit 18, 000; Credit 18, 000. D) Debit 12, 000; Credit 12, 000. Show Answer Correct Answer: A) Debit 11, 000; Credit 18, 000. 16. Purchases returns of $ 55 was debited to purchase returns and credited to trade payables A) Reversal. B) Omission. C) Principle. D) Compensating. Show Answer Correct Answer: A) Reversal. 17. Which of the following errors are single entry? A) Credit sales of $ 3000 was recorded in sales account only. B) Credit sales of $ 3000 was correctly recorded in personal account while sales account was recorded as $ 300. C) All the above. D) None of the above. Show Answer Correct Answer: A) Credit sales of $ 3000 was recorded in sales account only. 18. Discounts allowed of RM 100 to Joe had been debited to the personal account. Does this error need Suspense account to make correction? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 19. What will be the rectifying entry if:Goods of Rs5000 withdrawn by the proprietor for personal use, posted in sales account, however purchases account was correctly credited A) Drawings account DR 5000To sales a/c 5000. B) Suspense account Dr 5000 To drawings a/c 5000. C) Sales a/c dr 5000Drawings a/c Dr 5000 To Suspense a/c 10000. D) None of these. Show Answer Correct Answer: C) Sales a/c dr 5000Drawings a/c Dr 5000 To Suspense a/c 10000. 20. How the debit balance of Suspense Account should be shown on Statement of Financial Position? A) Non-Current Assets. B) Current Assets. C) Non-Current Liabilities. D) Current Liabilities. Show Answer Correct Answer: B) Current Assets. 21. Payment of cash made for $ 56 for heating costs was missed out of the double entry account A) Omission. B) Reversal. C) Compensating. D) Commission. Show Answer Correct Answer: A) Omission. 22. Sales of Van used in business for $ 500 was credited to the sales account A) Commission. B) Omission. C) Reversal. D) Principle. Show Answer Correct Answer: D) Principle. 23. Cash recorded in cash book but not in ledger: A) Error of omission. B) Error of commission. C) Compensating error. D) Error of principle. Show Answer Correct Answer: A) Error of omission. 24. An invoice received from a supplier for $ 657 was recorded in the purchases journal as being for $ 567. A) Errors of omission. B) Errors of commission. C) Errors of principle. D) Compensating errors. E) Errors of original entry. Show Answer Correct Answer: E) Errors of original entry. 25. Sale on credit to Georgia for $ 110 was debited to sales and credited to the customer's account A) Original entry. B) Compensating. C) Reversal. D) Omission. Show Answer Correct Answer: C) Reversal. 26. Which of these is a limitation of the trial balance? A) Shows arithmetical accuracy of ledger. B) Detects all types of accounting errors. C) Can detect errors of omission. D) Shows the business's financial position. Show Answer Correct Answer: B) Detects all types of accounting errors. 27. SALES OF GOODS TO LUQMAN WAS WRONGLY RECORDED AS SALES OF GOODS TO HAKIM. IDENTIFY THIS TYPE OF ERROR. A) ERROR OF COMMISSION. B) ERROR OF OMISSION. C) ERROR OF PRINCIPLE. D) ERROR OF ORIGINAL ENTRY. Show Answer Correct Answer: A) ERROR OF COMMISSION. 28. A suspense account is used to A) A-agree the trial balance. B) B-record sales. C) C-record purchases. D) D-correct errors. Show Answer Correct Answer: A) A-agree the trial balance. 29. Recorded as 1, 500 instead of 15, 000: A) Affect the trial balance. B) Not affect the trial balance. C) Cause compensating error. D) Correct automatically. Show Answer Correct Answer: B) Not affect the trial balance. 30. Which of these describes the error:Transaction completely omitted A) Error of commission. B) Error of omission. C) Error of principle. D) Error of original entry. 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