The Correction of a Material Error That Occurred in a Previous

question 9

Multiple Choice

The correction of a material error that occurred in a previous period must be accounted for by:

• A) disclosure in the notes to the financial statements.
• B) an adjustment in future accounting periods.
• C) a prospective adjustment to the financial statements.
• D) a retrospective restatement in the first financial statements issued after the discovery of the error.

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Definitions:

Human Resource Planning

The process of predicting and planning for future HR needs to ensure the organization has the right number of employees with the right skills at the right time.

Compensation Policies

Guidelines that dictate how employees are rewarded for their work, including wages, salaries, bonuses, and benefits.

Strategic

An approach that involves planning and decision-making which focuses on long-term goals and the overall direction of an organization.

Staffing

The process of hiring, positioning, and overseeing employees in an organization.