Income Statement Errors in the Current Year That Do Not

question 172

Multiple Choice

Income statement errors in the current year that do not affect the balance sheet may ________.

• A)require adjustment to retained earnings
• B)affect future years retained earnings
• C)be self-correcting
• D)change earnings per share

Understand the difference between one-tailed and two-tailed hypothesis tests.

Identify the correct set of hypotheses for various testing scenarios.

Calculate and interpret the critical values in hypothesis testing.

Apply the concept of standard error in hypothesis testing.