[Solved] Treating revenue expenditure as capital expenditure is an example of error of

Treating revenue expenditure as capital expenditure is an example of error of

a) Principle

b) Compensating

c) Clerical

d) None of these

Answer: (a) Treating revenue expenditure as capital expenditure is an example of error of Principle. “Treating a revenue expenditure as a capital expenditure” is an example of Error of principle. An error of principle is an accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental principles of accounting.

More MCQ and Answers on Auditing

  1. A vacancy caused by resignation of the auditor is filled by
  2. A company auditor can be removed before expiry of his term by
  3. Remuneration of a company auditor is fixed by the
  4. A company auditor, in general has to submit his report to
  5. An auditor of Government company has to submit his report to the
  6. Internal auditor has to submit report to
  7. Auditor should be dutiful like a
  8. Auditor, in general is an
  9. Which of the following percentage of nominal amount of shares should be received with application
  10. While checking allotment, auditor should see that amount

Comments