Rectification of Errors MCQs

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Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 26, 2023

This multiple choice question (MCQ) test covers rectification of errors. If you aim to answer every question correctly, it will be great preparation to test your understanding.

This quiz contains 10 questions. Each MCQ has 4 answers, and you need to choose the correct response.

If you find any questions difficult, consider reading the rectification of errors chapter from the Financial Accounting section of our website.

1. The errors in the books of account are broadly divided into:
2. Errors which are made while recording transactions in the journal and posting them in the ledger are called:
3. When a transaction is completely omitted from being recorded, it is called:
4. Goods were purchased from John for $2,000 with no entry made in the purchases book. This is an example of:
5. When a transaction is wholly or partially recorded incorrectly, it is called:
6. Salaries of $5,100 were wrongly posted to the salaries account as $1,500. This is an example of:
7. When a transaction is recorded without due regard to the fundamental principles of accounting, it is an example of:
8. If no distinction between capital and revenue expenditures is made while a recording transaction, it is:
9. Inadequate provision for bad and doubtful debts is an example of:
10. Insufficient depreciation is an example of:
11. Errors of principle affect only one account.
12. Costing errors are not reflected in the trial balance.
13. Errors of omission do not disturb the trial balance.
14. One-sided errors detected before the preparation of the trial balance are rectified without journal entries.
15. Debit balance of suspense account carried forward to the next accounting period is recorded as an asset in the balance sheet.
16. An insurance expense of $2,000 that is wrongly debited to the salaries account will decrease profit by $2,000.
17. The suspense account is not used to rectify two-sided errors.
18. If the debit column of the trial balance is short, then the suspense account will have debit balance.
19. Errors in personal and real accounts affect the net profit.
20. Agreement of trial balance means that there is no error in the books of account.
21. When a transaction is completely omitted from being recorded, this is an error of:
22. If any transaction, wholly or partially, is recorded incorrectly, this is an error of:
23. Disagreement of trial balance indicates that the following has occurred:
24. Errors in journals and the ledger are:
25. Errors that arise when totaling special journals are:
26. Errors are classified into the following number of groups:
27. Compensating errors are of a neturalizing nature.
28. The cost of furniture debited to the purchases account is an example of:
29. Net profit is affected by errors in nominal accounts only.
30. One-sided errors are corrected via:

Rectification of Errors MCQs FAQs

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About the Author

True Tamplin, BSc, CEPF®

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True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.

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