Errors of Omission

System
System Posts: 100,534 🤖 Admin 🤖
If something is omitted from the trial balance what effect would it have on profit? I am thinking that it would affect the profit and loss sheet making the profit seem lower?????!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Errors of Omission

    It depends what it is, if an expense was omitted it would make the profit seem higher. Errors of omission make the trial balance not balance but can affect the profit and loss or balance sheet or even both, depending on what has been left out.

    Annette
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