When a Self-Correcting Error Is Discovered After Closing the Books

question 79

Multiple Choice

When a self-correcting error is discovered after closing the books for the second year ________.

• A) no entry is necessary because all permanent accounts are correctly stated
• B) an entry is necessary to correct the permanent accounts
• C) an entry must be made to correct both the income statement and balance sheet accounts
• D) an entry must be made to correct the income statement

---

Definitions:

C$ Weakens

When the Canadian dollar decreases in value compared to another currency, making it less valuable in foreign exchange markets.

€0.0211

A monetary value representing a little over two cents in Euro currency.

C$ Per €

The exchange rate showing how many Canadian dollars (C$) you need to purchase one Euro (€).

€ Per ¥

The exchange rate expressing how much one euro (€) is worth in Japanese yen (¥).