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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