O-LevelAccountingVerification of accounting records7707/11 · May/June 2022 · Q91 Mark
What is an example of a compensating error?
Apayment for office equipment repairs was debited to the office equipment account.
Bpurchase of goods from C Jones was credited to the account of C Johns.
CThe sale of goods, $65, to A Aziz was entered in the books as $56.
DThe wages account was undercast by $100 and the rent account was overcast by $100.
✓ Correct answer
D: The wages account was undercast by $100 and the rent account was overcast by $100.
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