A compensating error is an accounting error that is balanced out by another error, making the errors cancel each other out so that the trial balance does not reveal the mistake.
A correcting entry is an accounting entry made to fix an error in a previously recorded transaction to ensure that the financial statements accurately reflect the financial position and performance of a business.
An original entry error is a mistake made in a book of prime entry such as a purchase incorrectly entered in the purchase day book, which is not revealed by a trial balance.
A suspense account is a temporary account in the books of an organization used to record balances to correct mistakes or balances that have not yet been finalized.
