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.

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Definitions:

Compile Program

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Standard Output

Standard output is the default stream where a program writes its output data. It can be viewed on a display or redirected to a file.

Int Variables

Variables declared to hold integer values, which are whole numbers without a fractional part.

Index

An integer value that indicates a position within an array, list, or other data structures.