An error of principle is made, if
-
A.
an entry has been made on the wrong class of account -
B.
a transaction has been completely omitted -
C.
an entry has been made on the wrong side of the two accounts corcened -
D.
a transaction is entered in both accounts for the wrong amount
Correct Answer: Option A
Explanation
An error of principle is an accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental principles of accounting. An error of principle is a procedural error, meaning that the value recorded was the correct value but placed incorrectly.