Net Income Was Understated in the Previous Year

question 27

Multiple Choice

Net income was understated in the previous year. The entry to record the correction includes a:

• A)credit to Retained Earnings.
• B)credit to Income Summary.
• C)debit to Retained Earnings.
• D)debit to Income Summary.

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Definitions:

Electronic Device

A device that uses electricity to perform a function, such as a smartphone or laptop.

Computer

An electronic device designed to accept data, perform prescribed mathematical and logical operations at high speed, and display the results of these operations.

Grid Computing

A type of distributed computing where a virtual supercomputer is composed of a cluster of networked, loosely-coupled computers, working together to perform large tasks.

Distributed Computing

A computing paradigm that divides a problem into multiple components that are solved by different computers connected by a network, working together to achieve a common goal.