Which of the Following Types of Errors Will NOT Self-Correct

question 15

Multiple Choice

Which of the following types of errors will NOT self-correct in the next year?

• A) Accrued expenses not recognized at year-end
• B) Accrued revenues that have not been collected not recognized at year-end
• C) Depreciation expense overstated for the year
• D) Prepaid expenses not recognized at year-end

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Definitions:

Income Tax Schedule

A chart or table that displays tax rates applied to different levels of taxable income, used to calculate the amount of income tax owed.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Taxable Income

Taxable income is the portion of an individual's or company's income used as the basis to calculate the taxes owed to the government.

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income, indicating the portion of income that is paid in taxes.