Final answer:
The 'type of error' where a cash sale of £100 was not recorded refers to an accounting mistake that results in an understatement of revenue and cash. This error affects the accuracy of financial statements and should be corrected with appropriate accounting entries. Detecting such errors is important to maintain financial integrity and for educational purposes in accounting studies.
Step-by-step explanation:
The issue described as a 'type of error: A cash sale of £100 was not recorded' falls within the realm of accounting, which is a subdiscipline of business studies. This particular issue pertains to a transaction recording error and could have an impact on the financial statements of a business. When a cash sale is not recorded, it leads to an understatement of revenue and cash in the accounting records. This type of omission can distort the financial health of a company as reported in its income statement and balance sheet.
To correct this error, the omitted sale should be recorded with a debit entry to cash and a corresponding credit entry to sales revenue. It's important for businesses to maintain accurate records to ensure that financial statements reflect the true business activities. Regular audits or review of transactions can help in detecting such errors.
It is also crucial to determine whether this error was accidental or intentional, as intentional omissions could indicate fraudulent activities. In an educational setting, understanding these types of errors is essential for students studying accounting principles and practices.