Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 16 - No. 44)
What type of error involves two or more errors that cancel each other out, resulting in a balanced trial balance, even though the underlying transactions are incorrect?
Error of omission.
Compensating error.
Error of principle.
Error of commission.
Explanation
Compensating errors can offset each other, creating an incorrect balanced trial balance.
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