If a Material Accounting Error Was Made in a Prior

question 14

Multiple Choice

If a material accounting error was made in a prior year,that error:

• A)Should be reflected on the current year's income statement.
• B)Should be reflected,net of taxes,on the retained earnings statement.
• C)Should be reflected as a change in accounting principle.
• D)Should be considered as a non-recurring item,and shown,net of taxes,on the income statement.

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Definitions:

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A sudden, acute allergic reaction to a substance (allergen) to which the body has become sensitized, leading to symptoms like sneezing, itching, and difficulty breathing.

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The process of deriving general rules or principles from specific examples, often used in the context of learning and reasoning.

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