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When a Journal Entry Contains an Error and the Error

question 103

True/False

When a journal entry contains an error and the error is detected after posting, the entry can be corrected.


Definitions:

Lower-of-cost-or-market

An accounting principle that valuables inventory at the lower cost between the original purchase cost and its current market price.

Conservatism

An accounting principle that requires uncertainties and risks to be accounted for by reporting lower potential profits and higher liabilities.

Replacement Cost

The cost to replace an asset at its current market price, often used in insurance and accounting.

Inventory

The total amount of goods or materials a company has in stock for sale or production.

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