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WAEC Financial Accounting 2008 Question 21

Question 21

Correction of Errors and Suspense Account

The purchase of furniture, an asset to the company was debited to purchases account. This is an error of

  1. A.omission
  2. B.original entry
  3. C.principle
  4. D.commission.
Show the answer and explanation

Answer: C (principle)

Explanation

A fixed asset entered in an expense account is an error of principle.