Compensating errors offset each other, leaving the trial balance unaffected.

Steps:

• Recall that compensating errors involve two or more mistakes that cancel out, such as equal over- and understatements.
• Review each option to identify if errors balance each other without net impact on totals.
• Eliminate options with single-sided or non-offsetting errors (A, B, C).
• Confirm the option with mutual cancellation (D) as the match.

Why D is correct:

• Wages undercast by $100 and rent overcast by$100 offset exactly, per the definition of compensating errors where net trial balance remains balanced despite individual account inaccuracies.

Why the others are wrong:

• A: Error of principle (misclassifying expense as asset); no offsetting error.
• B: Error of commission (wrong personal account); affects only one side.
• C: Arithmetic error (casting mistake); single entry distortion without compensation.

Final answer: D