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    If you are troubleshooting a serious error on your system, this guide can help. Error compensation occurs whenever an error has been compensated, and also on a compensation input that is also in error. For example, an incorrect length is recorded on the inventory and is undoubtedly offset by the same absolutely incorrect amount recorded on the bills you pay for that inventory.

    What Is Error Compensation?

    What is meant by compensating error give an example?

    make up for mistakes There are circumstances when all the consequences of a transaction are neutralized by another failure. If persistent errors cancel out committed errors, the errors are compensated. For example, goods sold to Mr. X in the amount of 5000/- were accounted for, while the debit side of account X was only 500.

    A compensating error is a marketing error that compensates for another computer system error. These errors can be very difficult to spot when they occur on the same account and during the actual reporting period as the net result is zero. Statistical study and report may not detect a major compensating error.

    meaning compensating error

    Of course, these errors also occur with different accounts, so the total debit and credit check balances are correct, but the different account balances are wrong for some reason. For example, labor costs may be $2,000 higher due to an error, and sales costs may be $2,000 lower due to a payment error. Or part of the income bill may be overstated by a very small amount of $5,000, but it is offset by a similar compensation error on the utility bill.

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    About The Authors
    True Tamplin, BSc, CEPF®

    What is meant by compensating errors Class 11?

    Compensation issues: Compensation errors occur when one input drastically counteracts the effect of another incorrect input. These entries clear the other specific error being recorded.

    True Tamplin is primarily a Publisher, Speaker, UpDigital CEO and Founder of Finance Strategists.


    meaning compensating error

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