This quiz works best with JavaScript enabled. Home > Grammar > Editing And Proofreading > Correction Of Errors – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Correction Of Errors Quiz 3 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. 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. 3. 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. 4. 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. 5. 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. 6. 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. 7. 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. 8. 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. 9. 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. 10. 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. Show Answer Correct Answer: B) Error of omission. 11. Purchase return of $ 87 was entered in both accounts as $ 870 A) Commission. B) Original Entry. C) Reversal. D) Compensating. Show Answer Correct Answer: B) Original Entry. 12. 2) $ 68 paid by credit transfer for insurance was entered in the accounting records as $ 86.Which double entry will correct this error? account debited $ account credited $ A Bank 18 insurance 18B bank 68 Insurance 68C insurance 18 bank 18D insurance 68 bank 68 A) A. B) B. C) C. D) D. Show Answer Correct Answer: A) A. 13. Insurance of $ 200 paid by cheque has been recorded as $ 20 in both accounts.State the effect of error on profit for the period, assets, liabilities and equity. A) Profit for the period, Assets and Equity-overstated by $ 200. B) Profit for the period, Assets and Equity-overstated by $ 180. C) Profit for the period, Assets, Liabilities and Equity-overstated by $ 180. 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 $ 180. 14. Which of the following is NOT a shortcoming of single entry book-keeping? A) A-A trial balance is not available. B) B-Profits are overstated. C) C-There are no subsidiary books. D) D-There are no control accounts. Show Answer Correct Answer: B) B-Profits are overstated. 15. Credit purchase of goods worth $ 340 has been recorded as $ 430. The correcting journal entry would be: A) DR Inventory 90 CR Trade payable 90. B) DR Trade payable 90 CR Inventory 90. C) DR Cash at bank 90 CR Inventory 90. D) DR Inventory 90 CR Cash at bank 90. Show Answer Correct Answer: B) DR Trade payable 90 CR Inventory 90. 16. Cheque of $ 580 paid to Melon Tree has been recorded in the account of Melon Three.State the effect of error on profit for the period, assets, liabilities and equity. A) Profit for the period overstated by $ 580. B) Assets and Equity overstated by $ 580. C) Assets, Liabilities and Equity-no effect. D) Profit for the period, Assets, Liabilities and Equity-no effect. Show Answer Correct Answer: D) Profit for the period, Assets, Liabilities and Equity-no effect. 17. Increase in allowance for doubtful debts should be A) Dr. Profit and loss Cr. Allowance for doubtful debts. B) Dr. Allowance for doubtful debts Cr Profit and loss. C) Dr. Suspense Cr Allowance for doubtful debts. D) Dr. Allowance for doubtful debts Cr Suspense. Show Answer Correct Answer: A) Dr. Profit and loss Cr. Allowance for doubtful debts. 18. Sale understated by 200 and purchase overstated by 200: A) Error of omission. B) Error of commission. C) Compensating error. D) Error of principle. Show Answer Correct Answer: C) Compensating error. 19. 07) A suspense account was opened with a credit balance of $ 840. Which error caused this?A A cheque for $ 420 received from a customer was debited to his account.B Discounts allowed, $ 420, was debited twice in the discounts allowed account.C Goods costing $ 420, taken by the owner of the business for own use, were credited to his drawings account.D Rent received, $ 420, was credited twice in the rent receivable account. A) A. B) B. C) C. D) D. Show Answer Correct Answer: A) A. 20. What type of error has occurred when cheque of $ 110 paid to Dominic credited to the account of Max? A) Commission. B) Compensating. C) Principle. D) Original entry. Show Answer Correct Answer: A) Commission. 21. Which of the following type of error will result in an imbalance on the trialbalance? A) A-Error of omission. B) B-Error of commission. C) C-Compensating error. D) D-Extraction error. Show Answer Correct Answer: D) D-Extraction error. 22. Expenses on minor repairs of building was posted to building account. This isan error of A) A-Omission. B) B-Complete reversal. C) C-Principle. D) D-Compensation. Show Answer Correct Answer: C) C-Principle. 23. What type of error has occurred when a transaction is missed out of the accounts completely? A) Commission. B) Compensating. C) Omission. D) Original entry. Show Answer Correct Answer: C) Omission. 24. A trial balance is a proof of accuracy of A) A-transactions. B) B-final accounts. C) C-double entry in the ledgers. D) D-trading account. Show Answer Correct Answer: C) C-double entry in the ledgers. 25. What is the impact on profit for the year if income overstated? A) Profit will be overstated. B) Profit will be understated. C) No effect. D) None of the above. Show Answer Correct Answer: A) Profit will be overstated. ← PreviousNext →Related QuizzesGrammar QuizzesCorrection Of Errors Quiz 1Correction Of Errors Quiz 2Correction Of Errors Quiz 4Correction Of Errors Quiz 5Correction Of Errors Quiz 6Correction Of Errors Quiz 7Accept Vs. Except QuizAffect Vs Effect QuizCommon Mistakes QuizCommon Modifier Errors QuizCommon Usage Errors QuizCommon Word Errors QuizCommonly Confused Words QuizConjunction Errors In Sentences QuizCorrect Usage QuizCorrecting Dangling Modifiers QuizCorrecting Grammar Mistakes QuizCorrecting Misplaced Modifiers QuizDangling And Misplaced Modifiers QuizDangling Modifiers QuizEdit Grammar Usage QuizEditing And Formatting In Word QuizEditing Common Grammatical Errors QuizEditing QuizError Correction QuizError Recognition QuizEssay Errors QuizFind The Errors QuizFind The Missing Correlative Conjunctions QuizGrammar Error Identification QuizGrammar Mistakes In Writing QuizGrammar Usage QuizHomophone Usage QuizHomophones QuizIdentifying Errors In Sentences QuizIt'S Vs. Its QuizLatin Agreement Mistakes QuizMaking Mistakes QuizMisplaced Modifiers QuizModifiers Placement QuizPronoun Errors QuizPronoun Reference QuizPronoun Usage QuizRecognizing Dangling Modifiers QuizSubjunctive Errors QuizThen Vs. Than QuizTo Vs. Too QuizUsage Errors QuizVerb Usage Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books