Errors that don't affect the trial balance Flashcards Preview

Accounting Unit 1 > Errors that don't affect the trial balance > Flashcards

Flashcards in Errors that don't affect the trial balance Deck (6)
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1

Compensating Error

Where errors on the debit side equal errors on the credit side and they cancel each other out

2

Error of Commission

Where an amount is posted to an incorrect account of the correct type

3

Error of Principle

When an amount is posted to an incorrect class of account

4

Error of Original Entry

Where an error is made transferring an amount from the source document into the book of original entry.

5

Errors of Reversal

Where the account that should have been debited has been credited and the amount that should have been credited has been debited

6

Errors Of Omission

Where both sides of the transaction, debit and credit, have been omitted from the records