Which of the Following Statements Is True About Errors in the Financial

question 71

Multiple Choice

Which of the following statements is true about errors in the financial statements of a company?

• A) Errors are a result of intentional mistakes made while recording or posting transactions.
• B) Errors are not intentional and when detected are immediately corrected.
• C) Errors are not intentional and therefore do not need to be corrected.
• D) Errors are usually an intentional attempt at fraud.

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Definitions:

Authority

The right or power assigned to an individual or organization to make decisions, act, and enforce obedience.

Organization

A structured group of individuals working together to achieve common goals or objectives, often characterized by a formal hierarchy.

Issuing Securities

The process by which corporations or governments raise capital by selling stocks, bonds, or other financial instruments to investors.

Raise Capital

The act of obtaining funds to finance operations, growth, or investments of a business.