Net Income Was Understated in the Previous Year

question 19

Multiple Choice

Net income was understated in the previous year. The entry to record the correction includes a:

• A)credit to Income Summary.
• B)debit to Retained Earnings.
• C)debit to Income Summary.
• D)credit to Retained Earnings.

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Definitions:

False Memory

A mental event where someone mistakenly believes they remember an event that never occurred or recalls the event inaccurately.

Semantic Memory

is a type of long-term memory involving the capacity to recall words, concepts, or facts that are not drawn from personal experience.

Word Lists

Sequences of words used in memory and learning experiments to study recall and recognition.