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:

Estrogen Production

The synthesis of estrogen hormones, primarily by the ovaries, which play key roles in female reproductive health and secondary sexual characteristics.

Sexual Act

A physical interaction between individuals that involves the genital organs, often for reproduction or pleasure.

Clitoris

A sensitive and erectile part of the female genitals at the anterior end of the vulva, playing a key role in female sexual pleasure.

Engorged

Swollen with fluid or blood, often used in reference to tissues or organs that have filled with such substances to a higher than normal volume.