If It Is Found That an Error Had Been Made

question 46

Multiple Choice

If it is found that an error had been made in a prior period:

• A)The error should be rectified by including the item of income or expense in the period in which the error was discovered.
• B)IAS 1 does not cover this concept and so no entry is required.
• C)IAS 8 requires that errors are corrected via an adjustment to opening balance of retained earnings.
• D)Material errors discovered in the current reporting period must be included in that period's statement of comprehensive income, while non-material errors may be corrected with an adjustment to opening retained earnings.

Identify financial instruments not considered as cash equivalents.

Understand the reporting and classification of bank indebtedness.

Apply knowledge of cash equivalents and bank indebtedness to bank reconciliation processes.

Understand the principles behind selecting an inventory cost formula and its impact on cost matching.

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Definitions:

Heroin

An illegal, highly addictive opioid drug derived from morphine, known for its euphoric effects but also associated with serious health risks.

Opiate Drugs

Narcotic drugs derived from opium or opium-like compounds, used medically to relieve pain but can lead to addiction.

Tolerance

The process of becoming less responsive to a specific amount of a substance or stimulus after repeated exposure.

Dependence

A condition characterized by a physical or psychological need for a substance or behavior, often leading to compulsive use.