A Series of Immaterial Errors Spread Across Several Accounts

question 115

Multiple Choice

A series of immaterial errors spread across several accounts

• A)will always have a material impact on earnings.
• B)must always be corrected.
• C)if found by the auditors,will result in a disclaimer.
• D)can,in the aggregate,have a material effect on bottom line earnings.

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Definitions:

Unprofitable Segment

A division or part of a business that does not generate profit and may drain resources from the more profitable segments.

Discontinued Operations

Parts of a company's core business or product lines that have been discontinued or sold.

Income Tax Expense

The amount of expense that a business or individual incurs due to the taxes on its taxable income.

Disposal

The method of eliminating an asset or waste, which may include selling, recycling, or throwing away.