Multiple Choice
Which of the following statements is not true regarding the correction of an error?
A) The correction is reported prospectively and previous financial statements are not revised.
B) A journal entry is needed to correct any account balances that are incorrect as a result of the error.
C) Prior years' financial statements are restated to reflect the correction of the error (if the error affected those statements) .
D) A disclosure note should describe the nature of the error and the impact of its correction on net income, income from continuing operations, and earnings per share.
Correct Answer:
Verified
Correct Answer:
Verified
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