If a Material Accounting Error Was Made in a Prior

question 9

Multiple Choice

If a material accounting error was made in a prior year,that error:

• A)Should be reflected on the current year's income statement.
• B)Should be reflected,net of taxes,on the retained earnings statement.
• C)Should be reflected as a change in accounting principle.
• D)Should be considered as an extraordinary item,and shown,net of taxes,on the income statement.