Question

If the effect of one error is neutralized by
the effect of some other error, such
errors are called :
Your answer​

Answer 1

If the effect of one error is neutralized by the effect of some other error, such error is called a compensating error.

• A compensating error is an office error that balances another accounting error.

• These errors can be hard to advert when they occur within the same account and in the same reporting period, as the net effect is zero.  

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