The owner of a business withdraws $100 from the ATM and neglects to let anyone know so that the transaction can be recorded. This results in an error of commission and does not affect the agreement of the trial balance.

Question

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An error of commission occurs when an entry is made in the wrong account but with the correct amount. In this case, the transaction is not recorded at all, leading to an error of omission, which can affect the trial balance agreement.

The Owner of a Business Withdraws $100 from the ATM