Advertisements
Advertisements
Question
Answer in One Sentence:
What are compensating errors?
One Line Answer
Solution
When two or more errors, identified from books of accounts are in such a way that the net effect of these errors, on the debit and on the credit sides of accounts is nil, such errors are known as compensating errors.
shaalaa.com
Types of Errors-Compensating Errors
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
Give one word/term or phrase for the following statement:
Error in which the effect of one mistake is nullified by another mistake.
Do you agree or disagree with the following statement:
When one or more debit errors happen to equal one or more credit errors it is said to be a Compensating error.
Do you agree or disagree with the following statement:
When a transaction is not recorded according to the principles of accounting it is known as Compensating errors.
