When an Income Statement Error That Does Not Affect the Balance

question 60

Multiple Choice

When an income statement error that does not affect the balance sheet is not found until after the books are closed, an entry ________.

• A) must be made to correct the error during the next year
• B) must be made to correct the error by reopening the books
• C) is not necessary, but financial statements must be recalled immediately
• D) is not necessary, but the income statement must be corrected before issue

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Definitions:

American College of Physicians

A professional organization for internal medicine physicians, dedicated to improving patient care, education, and public health.

American Medical Association

A professional group representing the interests of physicians and healthcare professionals in the United States, advocating for public health and the advancement of the medical profession.

American Hospital Association

A national organization that provides education, advocates on behalf of its members, and creates guidelines to support hospital and healthcare administration.

American Society of Clinical Pathologists

A professional association aimed at providing excellence in pathology and laboratory medicine through certification, education, and advocacy.