When an Income Statement Error That Does Not Affect the Balance

Multiple Choice

When an income statement error that does not affect the balance sheet is not found until after the books are closed, an entry ________.

A) must be made to correct the error during the next year
B) must be made to correct the error by reopening the books
C) is not necessary, but financial statements must be recalled immediately
D) is not necessary, but the income statement must be corrected before issue