Distinguish between counterbalancing and noncounterbalancing errors. Give a unique example of each.

Counterbalancing errors are errors that will be offset or corrected over two periods. Non-counterbalancing errors are errors that are not offset in the next accounting period. An example of a counterbalancing error is the failure to record accrued wages or prepaid expenses. Failure to capitalize equipment and record depreciation is an example of a noncounterbalancing error.