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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Definitions:

Identity Construction

The process through which individuals and groups create, negotiate, and express their cultural, social, and personal identities, often influenced by societal structures and cultural norms.

Consumers

Individuals or organizations that purchase or use goods and services for personal or organizational needs.

Brand

A name, term, design, symbol, or any other feature that identifies one seller's goods or service as distinct from those of other sellers.

Professional Identity

The self-concept and values that an individual has in relation to their profession or occupational role.