Unsure Inc

question 11

Multiple Choice

Unsure Inc. made a very large arithmetical error in the preparation of its year-end financial statements by incorrect placement of a decimal point in the calculation of depreciation. The error caused the net income to be reported at almost double the correct amount. When Unsure discovered the error in the following year, correction of the error should be treated as a(n)

• A) adjustment to beginning retained earnings, net of tax.
• B) increase in depreciation expense for the year in which the error is discovered.
• C) gain for the year in which the error was made.
• D) component of income for the year in which the error is discovered, but separately listed on the income statement and fully explained in a note to the financial statements.

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Definitions:

Gastroenteritis

An inflammation of the stomach and intestines, usually resulting from bacterial toxins or viral infection and causing vomiting and diarrhea.

Arterial Blood Gas

A test measuring the levels of oxygen, carbon dioxide, and bicarbonate, as well as the pH of arterial blood, used to assess lung function and oxygenation status.

Urine Output

The amount of urine produced by the kidneys and excreted by the body, an important measure in assessing kidney and overall fluid balance status in patients.

Medicated IV

Intravenous delivery of medication, where drugs are administered directly into the veins for fast absorption and effect.