A Company Made an Error in Recording the 2009 Purchase

question 138

True/False

A company made an error in recording the 2009 purchase of computer equipment as an expense. This was discovered in 2011. The item should be reported as a prior period adjustment on the 2009 income statement.

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Definitions:

Reactive

Refers to responding to stimuli after they have occurred, rather than anticipating or initiating action.

Evocative

Having the ability to elicit a strong mental, emotional, or physical response.

Person-Environment Interaction

This term describes the dynamic and reciprocal relationship between individuals and their surroundings, where both influence and are influenced by each other.

Role Continuity Principle

A psychological principle suggesting that individuals are more likely to maintain a consistent self-concept and psychological well-being when they can maintain consistent social roles over time.