If a Material Error Is Discovered in an Accounting Period

Multiple Choice

If a material error is discovered in an accounting period subsequent to the period in which the error is made:

A) No adjustments are made.
B) No prior years' financial statements are restated but corrections are made in future years.
C) Any previous years' financial statements are retrospectively restated to reflect the correction.
D) No prior years' financial statements are restated but prior effects are corrected in the current balance of retained earnings.