If a Journal Entry That Contains an Error Has Already

question 19

Multiple Choice

If a journal entry that contains an error has already been posted,

• A) the incorrect items should be erased and replaced with the correct data.
• B) the journal need not be corrected but the posting to the ledger should be corrected by crossing out the incorrect data and writing the correct data above it.
• C) a correcting entry should be journalized and posted.
• D) the incorrect items should be corrected by crossing out the incorrect data and writing the correct data above it in both the journal and the ledger.

---

Definitions:

Long-Run Time Period

A duration in economics where all factors of production and costs are variable, allowing for complete adjustment.

Economies Of Scale

The economical benefits that businesses gain from their operation size, typically resulting in lower costs per unit of output as the scale expands.

Specialization

The process of focusing efforts and resources on a limited number of activities to increase efficiency and productivity.

Fixed Input

A resource in the production process whose quantity cannot easily be changed in the short term, such as buildings and machinery.