A Company Made an Error in Calculating and Reporting Amortization

question 23

Multiple Choice

A company made an error in calculating and reporting amortization expense in Year 1.The error was discovered in Year 2.The item should be reported as a prior period adjustment:

• A)on the Year 1 statement of retained earnings.
• B)on the Year 1 income statement.
• C)on the Year 2 statement of retained earnings.
• D)on the Year 2 income statement.
• E)accounted for with a cumulative "catch-up" adjustment in Year 2.

Examine the role of genetics versus the environment in shaping personality traits.

Evaluate the educational and psychological outcomes for children from different family backgrounds.

Recognize the importance of family functions during middle childhood and their influence on child development.

Discern the impact of parental negativity and support on child antisocial behavior and adjustment.

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Definitions:

Cash

Currency and other liquid instruments such as checks and bank deposits that are readily available for use in transactions and other immediate needs.

Normal Credit Balance

The expected balance type for certain accounts in the general ledger, such as liabilities, equity, and revenue accounts.

Revenue

The income a company generates from its business activities, typically from the sale of goods and services to customers.

Liabilities

Economic obligations or debts that a business owes to external parties, which must be settled over time through the transfer of economic benefits.