Which Statement Is Correct About a Correction of an Error

question 25

Multiple Choice

Which statement is correct about a correction of an error from prior periods?

• A)The correct information was available at the time the error was made.
• B)The correct information was not available at the time the error was made.
• C)One should use hindsight to judge whether there is an accounting error that requires correction.
• D)An example of a correction of an error is the difference between the allowance for doubtful accounts and the actual outcome of bad debts.

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Definitions:

T-Score

A standardized score that describes how far an individual's score lies from the mean of a distribution, measured in standard deviation units.

Confidence Estimate

A range or single value derived from a sample statistic that covers an unknown population parameter with a certain confidence level.

T-Distribution

Is a type of probability distribution that is symmetric and bell-shaped, used in statistics when the sample size is small and the population standard deviation is unknown.

Degrees Of Freedom

The number of values in a calculation that are free to vary without violating any constraints, used to determine the shape of various statistical distributions.