An Error of Original Entry Arises When

question 21

Multiple Choice

An error of original entry arises when:

• A) A transaction is completely missed out.
• B) A transaction is posted to the wrong type of account.
• C) Transactions are posted to the correct accounts, but the debit and credit entries are reversed.
• D) The correct accounts are debited and credited, but the wrong amount is recorded.

---

Definitions:

Interest Rates

The expense associated with acquiring a loan, usually represented as a proportion of the sum lent.

Better Off

A condition in which an individual or group's situation improves in terms of economic welfare, happiness, or other measures of well-being.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Interest Rate

The percentage of a sum of money charged for its use, often expressed on an annual basis.