A Company Made an Error in Calculating and Reporting Depreciation

question 162

Multiple Choice

A company made an error in calculating and reporting depreciation expense in 2011. The error was discovered in 2012. The item should be reported as a prior period adjustment:

• A) on the 2011 statement of changes in equity.
• B) on the 2011 income statement.
• C) on the 2012 statement of changes in equity.
• D) on the 2012 income statement.
• E) accounted for with a cumulative "catch-up" adjustment.

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