Chapter 9: Rectification of Errors — Online MCQ Test
ACCOUNTANCY · CLASS 11th · Tamil Nadu State Board
Practice Chapter 9: Rectification of Errors with a free chapter-wise online MCQ test.
This chapter covers: Exploring accounting error classifications this chapter covers one-sided and two-sided errors before and after trial balance preparation. Students learn suspense account mechanics....
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Chapter 9: Rectification of Errors — Important Questions & Answers
Which of the following errors is considered a 'clerical error'?
- A. Error of principle
- B. Error of omission
- C. Error of commission
- D. Compensating error
Answer: C. Error of commission
Errors of commission arise due to wrong recording, wrong casting, or wrong posting, which are classified as clerical errors.
Errors of commission arise due to wrong recording, wrong casting, or wrong posting, which are classified as clerical errors.
If the total of the sales book is undercast, which account will be affected?
- A. Sales Account
- B. Purchases Account
- C. Cash Account
- D. Debtors Account
Answer: A. Sales Account
Undercasting of the sales book means the sales account balance is lower than it should be, affecting only the Sales Account.
Undercasting of the sales book means the sales account balance is lower than it should be, affecting only the Sales Account.
Which of the following is an example of an error of omission?
- A. Posting to the wrong side of an account
- B. Recording a transaction in the wrong book
- C. Failing to record a credit purchase in the purchases journal
- D. Recording the wrong amount in the ledger
Answer: C. Failing to record a credit purchase in the purchases journal
An error of omission occurs when a transaction is completely left out from the books of original entry.
An error of omission occurs when a transaction is completely left out from the books of original entry.
If a transaction is recorded in the wrong book of original entry, it is an error of:
- A. Principle
- B. Commission
- C. Omission
- D. Compensating
Answer: B. Commission
Recording a transaction in the wrong subsidiary book is a type of error of commission, specifically related to recording errors.
Recording a transaction in the wrong subsidiary book is a type of error of commission, specifically related to recording errors.
Which of these is NOT a step in rectifying an error discovered after the preparation of final accounts?
- A. Using a Profit and Loss Adjustment Account
- B. Directly adjusting the current year's profit
- C. Passing a journal entry involving personal or real accounts
- D. Simply ignoring the error if it is small
Answer: D. Simply ignoring the error if it is small
Accounting standards do not permit ignoring errors; materiality must be considered, and adjustments must be passed via Profit and Loss Adjustment Account for nominal items.
Accounting standards do not permit ignoring errors; materiality must be considered, and adjustments must be passed via Profit and Loss Adjustment Account for nominal items.