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O-LevelAccountingVerification of accounting records7707/11 · May/June 2010 · Q101 Mark

Which is a compensating error?

Acheque received from J. Wilks debited to the account of J. Wilson
Bdrawings debited to the cash account and credited to the drawings account
Cpurchase of a motor vehicle on credit debited to the motor expenses account
Dsales account and purchases account both undercast by the same amount

✓ Correct answer

D: sales account and purchases account both undercast by the same amount

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About this question

Topic
Verification of accounting records, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, May/June 2010 Paper 1 Variant 1, question 10.

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