1- The process of totaling the transactions at the end of the period is called:

A). Posting

B). Casting✔️

C). Journalizing

D). Compensating

2- Omission of a transaction from a subsidiary record affect:

A). One account

B). Two accounts✔️

C). Three accounts

D). Several accounts

3- Error of principle involves an incorrect allocation of expenditure or receipt between:

A). Capital and revenue✔️

B). Capital and capitalized

C). Revenue and deferred revenue

D). Revenue and revenue

4- The error in the casting of sales book is called as:

A). Error of principle

B). Error of omission

C). Clerical error✔️

D). None of these

5- Wages paid for the erection of a machine debited to Wages account is an example of:

A). Clerical error

B). Error of principle✔️

C). Error of omission

D). None of these

6- Error of casting in bill receivable book affects:

A). Bill payable account

B). Debtor account

C). Bill receivable account✔️

D). Creditors account

7- Over casting of purchases book is an example of error of:

A). Carry forward

B). Posting

C). Compensating

D). Casting✔️

8- Error of posting affects:

A). One account✔️

B). Two account

C). Three account

D). Four account

9- Sales of Rs.625 to Ali were posted to his account as Rs.562. To rectify the error, Ali’s account will be:

A). Debited by Rs.118

B). Debited by Rs.63✔️

C). Credited by Rs.65

D). None of these

10- Sales of Rs.500 to Amjad were not recorded while rectifying this error, Amjad’s account will be:

A). Credited by Rs.1000

B). Credited by Rs.500

C). Debited by Rs.500✔️

D). Debited by Rs.1000

11- An asset was purchased for the business, however, the amount was debited to purchases account. It is an error of:

A). Recording

B). Posting

C). Costing

D). Principle✔️

12- Some expenses are incurred at the time of the sale of an asset. The amount will be debited to:

A). Assets account✔️

B). Expenses account

C). Cash account

D). Purchases account

13- Impersonal accounts are affected by:

A). Errors of carry forward✔️

B). Errors, of casting

C). Errors of omission

D). None of these

14- Purchases from Kamran Rs.499, were not recorded. This will affect:

A). Only purchases account

B). Only Kamran account

C). Both the accounts✔️

D). None of these

15- Sales to Fahad, Rs.506, posted to his account as Rs.605 affect:

A). Sales account

B). Fahad account✔️

C). Cash account

D). Debtors account

16- Goods purchased from Salman Rs.3000, were passed through sales book. The rectification of the error will:

A). Increase the gross profit

B). Decrease the gross profit✔️

C). Have no effect on the gross profit

D). None of these

17- Goods sold for Rs.1,000 were entered in the sales book by Rs.2000, the rectification of the entry will:

A). Increase the net profit

B). Decrease the net profit✔️

C). Have double effect on net profit

D). Have no effect on net profit

18- Error of principle affects:

A). One account only

B). Two accounts✔️

C). Less than two

D). Have no effect on any account

19- Error of omission from trial balance affects:

A). One account✔️

B). Two account

C). Three account

D). Four account

20- Errors, which are made in the preparation of the trial balance are called:

A). Errors of omission

B). Errors of commission

C). Errors of principle

D). Trial balance errors✔️

21- Only those errors affect the profit of the business which are related to:

A). Trading and profit and Loss Account✔️

B). Balance sheet

C). Trading Account only

D). Profit and Loss Account only

22- If any expense account or revenue account is wrongly debited, the profit will decrease and when it is rectified:

A). The profit will become double

B). The profit will become half

C). The profit will increase✔️

D). The profit will less

23- If by error, any revenue omitted to be recorded it will:

A). Understate the profit

B). Overstate the profit✔️

C). Both A & B

D). Having no effect on profit

24- If there is any error in cash account, it will affect:

A). Trading Account

B). Profit and Loss Account

C). Balance sheet✔️

D). None of these

25- When all the errors are rectified and posted to suspense account, the suspense account shows:

A). Debit balance

B). Credit balance

C). Both sides are equal✔️

D). None of these

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