Firms account for material error corrections ________.
A) with the retrospective method
B) using the prospective method
C) only after they self-correct
D) only when both the income statement and balance sheet are affected

Question

Quizplus · Accepted Answer

Material error corrections are accounted for using the retrospective method, which involves restating prior period financial statements as if the error had never occurred.

Firms Account for Material Error Corrections ________