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.

---

Definitions:

Barium

A chemical element with symbol Ba and atomic number 56, used in medical imaging to improve the contrast of X-ray photographs.

Fluorescence

The emission of light by a substance that has absorbed light or other electromagnetic radiation, often seen in minerals, plant materials, and synthetic compounds.

Prone

Lying flat, especially face-down, or having a tendency or inclination towards something.

Supine

A position of lying on the back, face or front side up.