Explain the following, error of principle, error of commission, error of original entry, error of complete reverse entry, error of compensation

1. Error of principle: This type of error occurs when a transaction is recorded in a way that is not in accordance with accounting principles. For example, recording revenue as a liability instead of income would be an error of principle.

2. Error of commission: An error of commission occurs when an incorrect amount is recorded in the accounting records. This can include entering the wrong figure, misplacing the decimal point, or making a calculation error.

3. Error of original entry: This type of error occurs when a transaction is initially recorded incorrectly. For example, recording a sale as cash instead of accounts receivable would be an error of original entry.

4. Error of complete reverse entry: This error occurs when a transaction is completely reversed in the accounting records. For example, recording a payment as a credit instead of a debit would be an error of complete reverse entry.

5. Error of compensation: This type of error occurs when one mistake cancels out another mistake, resulting in the balances appearing to be correct. However, the overall financial statements will still be inaccurate due to the underlying mistakes.