Q220
When one or both aspects of a transaction are recorded in the wrong class or category of account, it is called
A.
Error of principle
AnswerB.
Error of omission
C.
Error of commission
D.
Error of original entry
Answer: Option A
Solution
Answer: Option A
Solution:
When one or both aspects of a transaction are recorded in the wrong class or category of account, it is called Error of principle. An error of principle is an accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental principles of accounting.