- 1 Marks
Question
The amount expended on motor repairs recorded in the Motor Vehicle account is an error of ____________.
Answer
Principle
Explanation:
An error of principle occurs when a transaction is recorded in the wrong type of account. In this case, motor repairs should be recorded as an expense rather than being capitalized in the Motor Vehicle account.
- Tags: Accounting for Repairs, Error of Principle, Errors in accounting
- Level: Level 1
- Topic: Correction of errors
- Series: NOV 2013
- Uploader: Theophilus