Accounting for IGCSE & O level - Accounting Procedures (Section 3 - No. 36)
A compensating error occurs when two or more errors offset each other. Identify the conditions under which this type of error arises.
Errors made on the debit side only.
Errors made on the credit side only.
Errors which balance each other out.
Errors that involve the same amount.
Explanation
Compensating errors are errors that balance each other out and also the errors that involve the same amount.
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