If It Is Found That an Error Had Been Made

question 45

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) AASB 101 does not cover this concept and so no entry is required.
• C) AASB 108 requires that errors are corrected via an adjustment to opening retained earnings.
• D) Material errors discovered in the current reporting period must be included in that period's income statement, while non-material errors may be corrected with an adjustment to opening retained earnings.
• E) None of the given answers.

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Definitions:

Personality Traits

Enduring characteristics or qualities that define an individual’s behavior, attitude, and emotional patterns.

Individual's Concept

A person's unique, abstract understanding or idea of something.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, affecting how they think, feel, and behave.

External Locus

A belief that outcomes of events are determined by forces outside personal control.