Errors on the statement of financial position are called transpositions and errors on the income statement are called irregularities.

Question

Quizplus · Accepted Answer

Errors on the statement of financial position and income statement are both called errors. Transpositions are a specific type of error where numbers or digits are accidentally switched, and irregularities generally refer to intentional misstatements or fraudulent activity on the income statement.

Errors on the Statement of Financial Position Are Called Transpositions