PRC-1 · Chapter 6 · Question 91 of 100
A business purchased an asset but completely forgot to enter the transaction in the books. Which specific type of accounting error is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Error of complete omission
Explanation
When a transaction is entirely left out of the accounting records (neither debited nor credited), it is classified as an error of complete omission. It will not disrupt the trial balance.
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