If a Prior-Period Error Only Affects the Balance Sheet, the Company

question 94

Multiple Choice

If a prior-period error only affects the balance sheet, the company should

• A) discuss the error in the notes to the financial statements only.
• B) restate the balance sheet from the prior year if it shows comparative financial statements.
• C) make a correcting journal entry and restate the balance sheet for the prior year.
• D) discuss the error in the notes to the financial statements and restate the balance sheet from the prior year.

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Definitions:

Hyphae

The long, branching filamentous structures of fungi, which collectively form the mycelium and are the primary mode of vegetative growth.

Hyphae

The long, thread-like structures that make up the body of fungi and some prokaryotic organisms.

Mycelia

A complex network of thread-like structures that form the vegetative part of fungi.

Mycorrhizae

Symbiotic associations between fungi and plant roots that facilitate nutrient exchange.