A Company Made an Error in Calculating and Reporting Amortization

question 23

Multiple Choice

A company made an error in calculating and reporting amortization expense in Year 1.The error was discovered in Year 2.The item should be reported as a prior period adjustment:

• A)on the Year 1 statement of retained earnings.
• B)on the Year 1 income statement.
• C)on the Year 2 statement of retained earnings.
• D)on the Year 2 income statement.
• E)accounted for with a cumulative "catch-up" adjustment in Year 2.

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Definitions:

EnsureCapacity

A method used in collections like ArrayList in Java, to pre-allocate storage to hold a minimum number of elements, optimizing performance by reducing dynamic reallocation.

Generic Class

A class in programming that is parameterized over types, allowing it to be used with various data types without modifying its source code.

Instantiate

The process of creating an instance of a class in object-oriented programming.

Resize

The process of changing the size of a data structure or graphical element, adjusting it to accommodate more elements or fit better in a UI.