The Correction of a Material Error That Occurred in a Previous

question 8

Multiple Choice

The correction of a material error that occurred in a previous period must be accounted for by:

• A) an adjustment in future accounting periods.
• B) a prospective adjustment to the financial statements.
• C) ignoring it; errors made in prior periods can't be corrected.
• D) a retrospective restatement in the first financial statements issued after the discovery of the error.

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Definitions:

Competition Act

Legislation intended to promote and maintain fair competition in the marketplace.

Enforcement

The act of compelling compliance with a law, rule, or obligation.

Subsection 45(2)

A specific reference within legislation or regulation that requires detailed knowledge of the context to describe accurately, often referring to a particular legal right, duty, or prohibition.

Competition Act

Canadian federal law aimed at preventing anti-competitive practices in the marketplace.