Which error arises from accruing or deferring the wrong amount in accounting?

The error that arises from accruing or deferring the wrong amount in accounting is termed an accrual or deferral error. This type of error occurs when an accountant records an amount that does not accurately reflect the actual obligation or entitlement that needs to be recognized in the accounting period. For example, if an expense is accrued for a larger amount than what was actually incurred, it can lead to an overstatement of expenses, thus impacting the financial statements.

Understanding accrual and deferral errors is crucial, as they can affect the matching principle in accounting, which aims to align revenues with their corresponding expenses. By recognizing revenues and expenses in the correct periods, businesses can present a more accurate picture of their financial performance.

In contrast, other types of errors such as omission errors pertain to failing to record a transaction altogether, classification errors involve misplacing a transaction into the wrong account category, and posting errors pertain to inaccuracies when transferring amounts from journals to ledgers. Each of these errors has distinct implications on the financial reporting process, but when it comes to the specific situation of accruing or deferring the incorrect amount, accrual or deferral error is the most appropriate classification.