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      Question

      A credit purchase of machinery recorded in the Purchase

      Book instead of Journal Proper is an example of:
      A Compensating errors Correct Answer Incorrect Answer
      B Errors of commission Correct Answer Incorrect Answer
      C Errors of principle Correct Answer Incorrect Answer
      D Errors of omission Correct Answer Incorrect Answer

      Solution

      Errors of principle occur when an accounting entry violates fundamental principles, such as incorrectly recording a machinery purchase in the Purchase Book, instead of the Journal Proper, which is the correct place for such entries.

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