Correction of an Error Is Based on

question 37

Multiple Choice

Correction of an error is based on

• A)new information that has now become available.
• B)information available at the time of preparing the financial statements.
• C)the use of hindsight.
• D)comparable industry practice.

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Definitions:

Uniform Commercial Code

A set of laws that provide legal rules and regulations governing commercial or business dealings and transactions.

Documents Of Title

Legal documents that evidence a person's right to control the disposition of goods or properties, such as bills of lading or warehouse receipts.

Bailment

The temporary transfer of possession of personal property from one party to another, with the expectation of its return.

Bailee's Lien

A right that allows a bailee (a person who temporarily holds property for another) to retain possession of the property until payment is made.