"Treating a revenue expenditure as a capital expenditure" is an example of

A. Compensating error

B. Error of principle

C. Error of omission

D. Error of commission

Answer: Option B

Solution(By Examveda Team)

"Treating a revenue expenditure as a capital expenditure" is an example of Error of principle. An error of principle is an accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental principles of accounting. An error of principle is a procedural error, meaning that the value recorded was the correct value but placed incorrectly.