Material income statement errors that occur in the current year and do not affect the balance sheet ________.
A) require adjustment to retained earnings
B) affect future years retained earnings
C) must be corrected
D) affect the statement of cash flows in prior years

Question

Quizplus · Accepted Answer

Material income statement errors that occur in the current year and do not affect the balance sheet must be corrected to ensure accurate financial reporting and compliance with accounting standards.

Material Income Statement Errors That Occur in the Current Year