The correct answer is: B. Errors of Principle
Errors of principle are errors in the application of accounting principles. They are not disclosed by a trial balance because they do not affect the total debits and credits.
Errors of commission are errors in recording transactions. They are disclosed by a trial balance because they affect the total debits and credits.
Errors of finding balance are errors in the arithmetic of the trial balance. They are disclosed by a trial balance because they affect the total debits and credits.
Here are some examples of errors of principle:
- Recording a sale on credit as a cash sale.
- Recording an expense as an asset.
- Recording a liability as an equity.
Here are some examples of errors of commission:
- Recording a sale for $100 when the actual sale was $1,000.
- Recording a purchase for $100 when the actual purchase was $1,000.
- Recording an expense for $100 when the actual expense was $1,000.
Here are some examples of errors of finding balance:
- Adding the debits and credits in the trial balance column incorrectly.
- Dividing the total debits and credits in the trial balance column incorrectly.
I hope this helps!