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What do you understand by the term Errors of Principle?
The entries related to Accounting are always recorded, which is an accepted as generally in Accounting Principle. In case these principles get ignored or violated, then outcome will be some errors. These errors are known as Errors of Principle.
What are the factors to get affected?
These errors can affect on-
- Income.
- Assets.
- Liabilities.
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What types of error it leads?
These can be anyone of the following-
- Under Stating.
- Over Stating.
What is the reason of this kind of error in the report?
The important reason is incorrect classification of receipt or expenditure between revenue and capital. This has a great importance because this can influence the financial data or statement badly. Capital expenditure must be debited to the asset account, but in case it gets debited to revenue expense, then it is known as Principle account.
These kinds of errors are done by managers and this does not affect the Trial Balance. To get any help you can easily come to get help from our Errors of Principle Assignment Help.
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