Errors Are Corrected by Adjusting the Beginning Balance in the Retained

question 201

True/False

Errors are corrected by adjusting the beginning balance in the Retained Earnings account in the period the error is discovered.

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Definitions:

Dishonored Check

A check that a bank refuses to cash or pay because there are insufficient funds in the account.

Sufficient Funds

Refers to having enough money in an account to cover checks or other withdrawal requests.

Federal Reserve Bank

One of the 12 regional banks that make up the Federal Reserve System, acting as the central banking system of the United States.

Business Days

Days of the week when business is typically conducted, usually Monday through Friday, excluding public holidays.