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    Question

    Which of the following errors occurs when a transaction

    is recorded in the wrong account but within the correct class of accounts?
    A ompensating errors Correct Answer Incorrect Answer
    B Errors of commission Correct Answer Incorrect Answer
    C Errors of principle Correct Answer Incorrect Answer
    D Errors of omission Correct Answer Incorrect Answer

    Solution

    Sol. Errors of commission occur when an entry is made in the wrong account, but within the correct class of accounts. For example, posting a payment to an expense account instead of a specific expense sub-account.

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