Which Of The Following Errors Cannot Be Revealed On The Preparation Of Trial Balance | MCQ Question Answer

The correct choices are (A) Error of Complete Omission and (D) Compensatory Error.

In compensating error, the effect of one error compensates the effect of another error and hence the debit column and credit column equalizes while in case of error of complete omission, the complete omission of journal entry or a missing entry does not affect the Trial Balance as both aspects of a Transaction are not recorded in the T-Accounts and as a result, the debit and credit columns of trial balance are agreed.

Wrong totalling of accounts and wrong balancing of accounts are easily detectable by preparing trial balance as the T-Accounts are not equalized and as a result the equality of debit and credit columns can not be achieved in trial balance i.e., arithmetic accuracy of debits and credits are easily identified by trial balance.