Errors of Omission
System
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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?????!
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Comments
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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.
Annette0