Types of Errors

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An error that occurs when a transaction has been completely omitted from the ledger accounts.
Omission
1 of 6
Occurs when a mistake is made in either preparing the original document to record the transaction, such as an invoice or credit note, or when an error is made in transferring a figure from the original document to the ledger accounts.
Original Entry
2 of 6
Occurs when a mistake is made in entering transactions in the ledger accounts, such as debiting J Smith's account instead of T Smith's account.
Commission
3 of 6
Occurs when an entry is made in the wrong type of account.
Principle
4 of 6
Occur when two or more errors are made when entering transactions in the ledger accounts which cancel each other out.
Compensation
5 of 6
When entries have been made in the wrong sides of the accounts.
Reversal
6 of 6

Other cards in this set

Card 2

Front

Occurs when a mistake is made in either preparing the original document to record the transaction, such as an invoice or credit note, or when an error is made in transferring a figure from the original document to the ledger accounts.

Back

Original Entry

Card 3

Front

Occurs when a mistake is made in entering transactions in the ledger accounts, such as debiting J Smith's account instead of T Smith's account.

Back

Preview of the front of card 3

Card 4

Front

Occurs when an entry is made in the wrong type of account.

Back

Preview of the front of card 4

Card 5

Front

Occur when two or more errors are made when entering transactions in the ledger accounts which cancel each other out.

Back

Preview of the front of card 5
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