Accounting WAEC

An error of principle is made, if?

A. an entry has been made on the wrong class of account
B. a transaction has been completely omitted
C. an entry has been made on the wrong side of the two accounts corcened
D. a transaction is entered in both accounts for the wrong amount

Correct Answer: Option A

A. an entry has been made on the wrong class of account

Explanation

An error of principle is an accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental principles of accounting. An error of principle is a procedural error, meaning that the value recorded was the correct value but placed incorrectly.

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