A Company Made an Error in Calculating and Reporting Amortization

question 55

Multiple Choice

A company made an error in calculating and reporting amortization expense in 2016. The error was discovered in 2017. The item should be reported as a prior period adjustment:

• A)on the 2016 statement of retained earnings.
• B)on the 2016 income statement.
• C)on the 2017 statement of retained earnings.
• D)on the 2017 income statement.
• E)accounted for with a cumulative "catch-up" adjustment in 2017.

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Definitions:

Single Placenta

Refers to the presence of one placenta in a pregnancy, which can occur in both single and multiple pregnancies, facilitating the exchange of nutrients and waste products between mother and fetus(es).

Schizophrenia

A mental disorder characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior.

Densely Populated Areas

Regions that have a high number of people living per unit of area, often leading to high housing density and potential strain on resources and services.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often characterized by delusions, hallucinations, and disordered thinking.