Modern Accounting Software Makes It Relatively Easy to Correct a Transaction

question 6

Multiple Choice

Modern accounting software makes it relatively easy to correct a transaction error. Minor errors discovered after the annual financial report is prepared are not corrected. Why not?

• A) Bookkeepers do not know how to fix the errors.
• B) Retracting an annual report is not appropriate for minor errors.
• C) Current year budgets would have to be changed.
• D) Accounting errors should be corrected only after a forensic audit.

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Definitions:

Risky Stock

A stock that carries a high level of volatility and uncertain returns, often associated with companies in emerging or highly competitive sectors.