Which of the Following Statements Is Not True Regarding the Correction

question 46

Multiple Choice

Which of the following statements is not true regarding the correction of an error?

• A)The correction is reported prospectively and previous financial statements are not revised.
• B)A journal entry is needed to correct any account balances that are incorrect as a result of the error.
• C)Prior years' financial statements are restated to reflect the correction of the error (if the error affected those statements).
• D)A disclosure note should describe the nature of the error and the impact of its correction on net income,income before extraordinary items,and earnings per share.

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Definitions:

Ingrained Habit

A deeply embedded pattern of behavior that is regularly performed and difficult to change.

Semistarvation Diet

A diet with significantly reduced calorie intake leading to malnutrition and health issues over time.

Preoccupied

Engrossed in thought or consumed with something specific, often ignoring or oblivious to one’s surroundings.

Apthetic

Exhibiting a lack of interest, enthusiasm, or concern; indifferent.