Advertisements
Advertisements
प्रश्न
What are compensating errors?
Advertisements
उत्तर
The errors that make up for each other or neutralize each other are known as compensating errors. These errors may occur in related or unrelated accounts. Thus, excess debit or credit in one account may be compensated by excess credit or debit in some other account. These are also known as offsetting errors.
APPEARS IN
संबंधित प्रश्न
A transaction not recorded at all is known as an error of ______.
Wages paid for installation of machinery wrongly debited to wages account is an error of ______.
What is meant by the error of principle?
What is meant by the error of complete omission?
What is the main impact of two-sided errors, such as errors of principle or compensating errors, on the trial balance?
If a transaction is completely missed in all books of accounts, which type of error is it?
Breaking accounting rules and misclassifying accounts is known as which type of error?
Why is a suspense account used in correcting accounting errors?
An error that results from wrong posting, totalling, or balancing in the books is called:
Which statement best summarizes the key differences between one-sided and two-sided accounting errors?
