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

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Definitions:

Liberal Solution

A term not universally defined, possibly referring to a problem-solving approach based on policies or ideas associated with liberal ideologies, emphasizing freedom, democracy, and equality.

Welfare Dependency

A condition wherein individuals or families rely extensively on government assistance programs for their income over an extended period, potentially inhibiting self-sufficiency.

Child Poverty

The state of children living below the poverty line, affecting their well-being, education, and future opportunities.

Industrialized Countries

Nations with significant levels of industrialization, characterized by a strong manufacturing sector, high levels of income, and advanced technological infrastructure.