A Company Made an Error in Calculating and Reporting Amortization

question 84

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

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Definitions:

Independent Variable

An independent variable is a variable that is manipulated in an experiment to observe its effect on a dependent variable.

Online Games

Video games that are either partially or primarily played through the Internet or any other computer network available.

Interpersonal Relationships

Interactions and connections between two or more people which can be emotional, social, or professional in nature.

Independent Variable

A variable in an experiment or model that is manipulated to determine its effect on a dependent variable.