If Errors Occur in the Recording Process, They

question 67

Multiple Choice

If errors occur in the recording process, they

• A) should be corrected as adjustments at the end of the period.
• B) should be corrected as soon as they are discovered.
• C) should be corrected when preparing annual financial statements.
• D) cannot be corrected until the next accounting period.

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Definitions:

TradeMarks

Symbols, words, or phrases legally registered or established by use as representing a company or product.

Appraisal Rights

The right of shareholders to have their shares appraised and to receive monetary compensation in lieu of accepting the terms of certain corporate actions, like mergers.

Shareholder Meeting

is a gathering of a company's shareholders, held to discuss the company's performance, elect the board of directors, and make other decisions affecting the company.

Adequate Compensation

Fair and reasonable payment or reimbursement for services, losses, or expenses incurred.