A Constraint That Requires an Instance of an Entity to Exist

question 20

True/False

A constraint that requires an instance of an entity to exist in one relation before it can be referenced in another relation is called an insertion anomaly.

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Definitions:

Material Error

A significant mistake in financial reporting that could influence the economic decisions of users of the financial statements.

Prospective Adjustment

An accounting adjustment applied to transactions or valuation changes that occur in the current or future accounting periods.

Adjusting Events

Events after the balance sheet date that provide further evidence of conditions that existed at the end of the reporting period, requiring adjustments to financial statements.