If a Mistake in Applying an Accounting Policy Is Discovered

question 44

True/False

If a mistake in applying an accounting policy is discovered in a subsequent period, that mistake must be corrected retrospectively.

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Definitions:

Deck

A pack of cards used in games, consisting typically of 52 pieces divided into four suits.

Addition Law

A probability law used to compute the probability of the union of two events. It is P(A ∙ B) = P(A) + P(B) − P(A ∩ B). For mutually exclusive events, P(A ∩ B) = 0; in this case the addition law reduces to P(A ∙ B) = P(A) + P(B).

Probability

The evaluation of how likely it is for an event to happen.