Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 44 - No. 31)
What are compensating errors?
Errors that balance each other out, but are still incorrect.
Errors that are found when preparing the trial balance.
Errors that cause the trial balance to not balance.
Errors that are easily fixed and don't cause any issues.
Explanation
Compensating errors is when errors cancel each other out, and appear balanced.
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