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What is meant by errors of principle?
You will certainly know that the accounting entries are maintained as per GAAP which is known as generally accepted accounting principles. In case such principles are ignored, the errors would be developed due to such ignorance and it is said as errors of principle.
Such errors would occur only in case there is any incorrect classification of receipts or expenditures that happens between capital and revenue. Errors of principle homework help will further make you acquainted with such errors that can create an impact on financial statements.
In case, the business has spent an amount for installation of asset, then it would fall under capital expenditure and would get debited to asset account. But, if it is debited to repairs and maintenance account, then it will be treated as revenue expenditure which can further be said error of principle.
Factors that affect errors of principle
Some of the errors that can have an effect:
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