The correct answer is errors Errors in accounting: An error is an unintentional mistake committed by an accountant while performing accounting activity due to lack of proper knowledge, carelessness or lack of proper documentation. Types of Errors in Accounting:Type of ErrorMeaningExampleError of principleThis type of error arises when wrong accounting principle is applied while performing the Accounting activities. These errors do not affect the Trial BalanceTreating the purchase of an asset as an expense. Error of OmissionThis type of error arises when an accountant completely or partially excludes or omits to record an entry in the books of accounts. Complete omission of entry does not affect the Trial Balance while partial omission affect the Trail Balance. Payment of Electricity bill omitted to be recordedError of CommissionThis error arises when an accountant makes correct debit or credit of the accounts but makes mistake in entering the amount or posting to wrong side in ledger. Purchase of fixed assets for Rs. 10,000 posted to credit of Vendor's account as Rs. 1000Compensating ErrorsWhen one error committed by an accountant compensates another error, it is called compensating errors. Purchase of goods from Ram Rs. 1000 & Shyam Rs. 4000 recorded as Ram Rs 4,000 and Shaym Rs. 1,000Additional Information Frauds: Deliberate, illegal manipulation of financial reports and data which is done in order to disguise the true financial position of a company. This is done with the aim of pleasing shareholders and investors by representing better financial position, attempting unlawful tax evasions, gaining competitive advantage in the market etc. Financial Shenanigans: Deliberate actions performed with a motive to misrepresent the true performance or the financial positions. These actions by the management deceive users, including investors, government authorities, banks, and credit rating agencies, about the company's genuine economic health. Scams: Scams are the fraudulent activities which are masked by some business transactions involving money. These are performed when someone misuses or takes advantage of loopholes in the system.